The Ministry of energy of the Russian Federation: oil price of $20 per barrel in the long term will not sustain anybody

The Ministry of energy of the Russian Federation: oil price of $20 per barrel in the long term will not sustain anybody


MOSCOW, January 28. The price of oil at $20 per barrel in the long term will not sustain anybody. Such opinion on air of the TV channel RBC was expressed by the first Deputy energy Minister Alexei Teksler.

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He noted that in the first place due to the fall in oil prices affected the budget, because 75-80% of the cost of oil in Western Siberia were withdrawn in the budget at previous oil price. “At $50 it dropped to $30-$31 under $30 a barrel to $12-$13 per barrel. At $20 per barrel the budget will be to withdraw to an average of $4. It is a multiple difference compared to just the $100 or $50,” he said. “At $20 per barrel the budget revenue will decrease so that in the long term when this price can be a separate complex solutions from the point of view of the budget. We all hope that this will not happen,” Teksler added.

According to him, the industry in this regard will feel less critical, because the cost of production is $3-$6 per barrel, if we take the overall transportation cost is $15-$16 per barrel. “The company will survive, but stop to think about investments and the future,” says Teksler.

Problems carriers

Teksler also noted that the cost of aviation fuel shows a normal growth rate, so the fuel costs are not the main cause of those challenges recently faced by Russian airlines.

“I don’t think that’s the main reason,” he said, commenting on the withdrawal from the transportation market for many companies. “The cost of petroleum products to our stations for the last year grew significantly less than inflation. If inflation is on average 15% was in the country, the cost of petroleum products increased by 5-7% at most”, – he said.

“At the refinery selling price of jet fuel over the past year was raised to 7-7,5%. Compared to the same inflation that we have observed is perfectly normal the rate of growth of cost,” he said.

Teksler noted that, although was introduced, the excise tax, the decision was made on compensation, if the filling goes into the wing.

Previously, the Association of air transport operators (air transport operators Association) appealed to the Vice Prime Minister Arkady Dvorkovich with the request for zero VAT for airlines on domestic routes. Russian air transport operators Association proposes to increase 1.5 times the amount of compensation of the excise duty on aviation fuel. Prime Minister Dmitry Medvedev promised to consider the support of the carriers.