The government decided to actually equate sunflower oil to oil and fight its rise in the same way as with the increase in fuel prices, reports TASS with reference to the Minister of Economic Development Maxim Reshetnikov.
According to the official, from September 1, a duty will be introduced for exporting sunflower oil. Earlier, from July 1, a similar measure will act in relation to sunflower seeds – the current duty will expire for this deadlines.
“Seeds, we will be docked by duties, the current on June 30 ends, so the new will be from July 1 and further. That is, we will not have a distance here. And on the duty on sunflower oil – there is on September 1, that is, focusing on New harvest, “the reshetnikov noted.
Currently in Russia there is a duty on the export of sunflower in the amount of 30 percent, but not less than 165 euros per ton. According to Reshetnikov, since July 1, it will be forbidden.
Duty on sunflower oil is absent. To introduce it to the Ministry of Economic Development offered at the end of last year to stabilize prices, but then it was decided to refuse from such a step. From September 1, a fixed cut-off price will be installed, 70 percent of which will be charged as a duty when exporting oil abroad.
As a result, the government in December concluded an agreement with the manufacturers of sunflower oil and sugar, as well as with trading networks to establish fixed vacation and retail prices. Initially, it operated until April 1, subsequently was extended until the end of May.
Similar mechanism is valid in the Russian oil industry. Exporting oil and petroleum products pay export duties. Due to this, the price level is formed (non-bank), acceptable to sellers in the domestic market. The increase in duty allows to reduce it and thereby hold back the rise in prices for oil and petroleum products within the country.
The export duty for petroleum products is traditionally lower than on the removal of oil. Due to this, oil refinery receive a kind of subsidy from the state – the ability to save when purchasing oil is larger than to lose when paying duty on their products or be lost from lower compared to possible prices in the domestic market. With increasing duty, exports of oil and petroleum products decreases, which entails the growth of supply within the country and leads to a decrease in prices.