The state Duma has increased the excise tax on gasoline from April 1

The State Duma adopted immediately in the first reading the amendment to the Tax code, according to which increased rates of excises on automobile gasoline and diesel fuel. The document envisages increase of the excise rate on diesel from 1 April 2016 to 2 rubles. per liter (10 to 130 thousand rubles per tonne), diesel fuel — by 1 ruble. per liter (5 to 293 thousand rubles per ton).

According to experts of the Ministry of Finance, as a result of increasing excise rates retail price of gasoline could rise by 6.5–7%.

“Maximum possible increase in prices due to excise tax will be within the projected level of inflation, namely 7-8%. The maximum negative effect on the level of retail prices will occur only if the manufacturer will fully pass this increase on to the consumer”, — said at a meeting of the state Duma by Deputy Finance Minister Yury Zubarev (quoted by “Interfax”).

In Moscow retail price of a liter of gasoline AI-95 was on Friday, February 26, according to the Moscow fuel Association, about 37,17 rubles. Thus, after the increase of excise taxes it could grow on 2,4–2,97 RUB.

That the Ministry of Finance proposed the second time this year to raise excise taxes on fuel, wrote on 3 February. A source in the Finance Ministry explained that the aim is to increase revenues because of the deficit caused by low oil prices.

“In the current very difficult budgetary situation, this is the only way to replenish road funds,” — said the official representative of the Ministry. “If oil prices will return to growth, we will offer to return to the former rates of excise taxes or reduce them,” he promised.

Commenting on the increase of excise duties, the head of LUKOIL Vagit Alekperov said that after their increase from 1 January 2016 (when they also increased by 2 rubles. per liter), oil companies began to shift their growth on to consumers. Speaking about possible increase of retail prices for gasoline by the end of 2016, Alekperov noted that it is unlikely to exceed 10%.

Additional revenues from increased fuel excise, the Ministry of Finance, financial and economic feasibility of the bill, estimated at 2016 at 89.3 billion rubles.

“This is a forced measure. The proposed additional increase in excise taxes is one solution among others to mobilize revenues of the Federal budget. The government will use its power to reduce the deficit,” Zubarev said, noting that if current world prices for energy carriers in 2016 the volume of shortfall in income may exceed 2 trillion rubles.

The last time two times a year in fuel excise taxes increase in 2013, then they were increased first in January and then in July. Assessment of Rosstat, in 2015, inflation in Russia amounted to 12.9%, gasoline prices rose 4.8%.