Oil cheaper — excise duties above
On the preparation of a bill to raise excise taxes on fuel was told by the official from the Finance Ministry and confirmed his official representative. The excise tax is expected to increase from 1 April to 2 rubles per liter of gasoline and 1 ruble per liter of diesel fuel.
According to a source in the Finance Ministry, the idea of raising excise taxes were discussed at meetings within the Agency, discussion with the oil companies was not. The final figures of growth of excise duties may change, he warns. The purpose of the increase is to raise revenues because of the deficit caused by low oil prices, says the source .
“Last week at a meeting with Prime Minister Dmitry Medvedev made the decision from 1 April to increase the excise tax on gasoline by 2 rubles. per liter, diesel by 1 RUR per liter. The President confirmed this decision,” said a senior Federal official. According to him, the basis — fuel prices should fall due to the fall in oil prices, so you can get from the market for more money. According to the Ministry of economic development on the increase of excise duties only on 1 rouble, he added.
The official representative of the Ministry of Finance confirmed the preparation of the bill. “The decision is not discussed in the government, and, though it finally adopted, the draft law is prepared. In the current very difficult budgetary situation, this is the only way to replenish road funds”, — he said. With the fall in oil prices, ceteris paribus, the price of gasoline in the domestic market should be reduced, he says. With this in mind, according to the Finance Ministry, the excise tax increase will not seriously affect retail prices. “If oil prices will return to growth, we will offer to return to the former rates of excise taxes or reduce them,” he promises.
First about the plans of growth of excises on gasoline and diesel fuel on January 26, said Deputy Prime Minister for Energy Arkady Dvorkovich. “Among the proposals of ministries there are separate items relating to the growth of excises on gasoline and diesel fuel,” he said. He also mentioned plans to increase dividends of state companies, which later confirmed the Ministry of economic development and Rosimushchestvo.
Representatives of the Ministry of energy and Ministry of economic development say they have not heard about the initiative of the Ministry of Finance to increase the excise taxes on fuel. A source in the presidential administration knows that the plans to raise excise taxes are discussed, and confirms the figures of the Finance Ministry, but doubts that the Ministry will have time to make such a decision through the state Duma by April 1, since the entry into force of the law is required to publish by 1 March, before discussing this with market participants. According to him, before July 1, the decision to hold would be problematic.
About plans of increasing excise taxes and know the sources in “Rosneft” and “Gazprom oil”. However, the latter heard about the plans until the end of the first half to increase the excise tax only on diesel fuel. An employee of LUKOIL, in charge of gasoline sales, to be negatively related to increase of excise duty on fuel. “We are for the status quo in this matter. Gasoline demand falls and so to the extent that is necessary to carry out the action at the pump to keep customers. Additional tax burden can affect the demand for the worse,” he said. In a press-services of LUKOIL and “Rosneft” have refused comments.
A second increase for the year
This year, on the proposal of the Ministry of Finance the excise tax on fuel was increased, from 1 January the rate of gasoline Euro-5 increased by 36.1%, or 2 rubles., up to 7,53 rubles per liter, and for diesel fuel — by 20.3%, to 4.15 rubles. per liter. “Nowhere in the world has such a large tax burden on the oil products market in Russia. Recent years, excise duties on fuel are growing annually, and there, in fact. to raise its offer for the second time in a year, indicates the General Director of the company “solid — the commodity markets” (a trader for the sale of petroleum products) Ilya Moroz.
Last time twice in one year, the excise tax was raised in 2013 — in January and July, like Director business development Agency “Analytics of commodity markets” Mikhail Turukalov. But the growth was insignificant: in January, the excise tax increased only for gasoline 4 th grade (by 1.7 rubles per liter), and gasoline 5 th grade decreased (by 1.68 rubles. per liter), and in July the increase was insignificant — only 0,4–0,6 rbl. for litre.
Assessment of Rosstat, in 2015, inflation in Russia amounted to 12.9%, gasoline prices rose 4.8%. From the beginning of 2016, gasoline prices are not rising and in some regions even fell slightly. Thus, the average retail price for gasoline AI-92 at the gas station Moscow, according to Moscow fuel Association, on February 1, 2016 amounted to RUB 34,43 per liter, down for the week on 2 kopecks, AI-95 — 37,09 RUB. (dropped by 7 kopecks), diesel fuel — 35,44 rubles per litre (reduced by 1 kop. per week).
In the case of growth of excises the oil companies will try to quickly pass them in the retail price of gasoline, notes Turukalov. Increase in the excise tax on gasoline by 2 rubles. per liter will raise the retail prices of “comparable value”, warns Turukalov.
If the decision [of the increase in the excise tax on 2 roubles] will be accepted, and the domestic price of gasoline due to the fall in world oil prices will not decrease, the increase in gasoline prices can be up to 3-3,5 rubles per liter, said a senior Federal official. According to him, it compensates for the abolition of the indexation system “Platon”, which, like the excise tax, is the source of road funds (the government is currently discussing to what date to postpone the wage hike on the “Plato”).
Dvorkovich said earlier that the price of gasoline in 2016 should not rise above inflation. According to him, the government expects that the increase in fuel prices will not exceed 10%.
The FAS against
The head of the control of the fuel and energy complex of the Federal Antimonopoly service (FAS) Dmitry Makhonin does not know about the plans to increase the excise tax on gasoline and diesel fuel: “Documents for approval.” In his view, any increase in excise taxes will once again lead to a rise in the cost of petroleum products. “We oppose unnecessary burdens on the industry in terms of tax component. But we need to see what offers the Ministry of Finance”, — he added. He recalled that at the end of 2014, President Vladimir Putin promised that within three years there will be no increase in the tax burden.
The Chairman of the Duma’s energy Committee Pavel Zavalny believes that the excise taxes on fuel it is advisable to increase with the abolition of the transport tax. “It is unfair if the transport tax is paid by motorists who rarely ride along with truckers. The excise tax is a regional tax. Thus, in the case of such adjustment of the tax burden, the regional authorities will receive additional income taxes in road funds”, — said the Deputy .