The government is ready to reduce the excise tax on fuel

23 May 2018

The unprecedented step to suspend the record rise in fuel prices

Russians have long been accustomed to constantly rising in price fuel. This process does not depend on world oil prices: even during the sharp decline of quotations of "black gold", the cost of gasoline and diesel fuel have been stable or even growing. And this is not surprising, since the lion's share of the final price for consumers is the various state excise and taxes, which are periodically increased. But now there was a startling news: the government may reduce the excise tax on gasoline and diesel fuel.

About this incredible news in an interview with "RIA Novosti" said the first Deputy Chairman of State Duma Committee for energy Sergei Isakov. He said that the excise tax on gasoline will be reduced by three thousand rubles per ton, and on diesel fuel by two thousand.

The probable reason for this step is the fact that the rise in fuel prices in 2018, significantly ahead of inflation. Since the beginning of the year, gasoline became more expensive by 4.7 %, diesel fuel — on 9 %. Experts called several reasons for this phenomenon. In 2018, the wholesale price of fuel has jumped by about 30 %. This happened due to the increase in oil prices: in December, oil was trading at around $64 per barrel, now it costs under $80.

While we are talking about the reduction in excise duties only for six months from July 1 until the end of December. Economists estimate that because of this measure the country's budget will lose about 100 billion rubles. Usually the government is very reluctant to cuts in income, especially if they are related to taxes and excise duties, in this case, however, even this impressive amount pales against the backdrop of 1.7 trillion rubles obtained due to the increase in oil prices.

to Rejoice while early

Despite the unique for the Russian economy with the reduction in excise duties, reasons for optimism is not so much. Analyst Vasily Tanurcov from the rating Agency ACRES estimated that given the current dynamics to expect real price reductions would be naive.

Yes, other things being equal the selling price of gasoline AI-95 and diesel fuel at filling stations should be reduced to 2 rubles per liter. But the problem is that retail prices still haven't caught up with wholesale. This means that the reduction in excise duties in the best case, will suspend price increases. a "At the current level of prices in wholesale gasoline and diesel fuel at the pump must go up by approximately 7 RUB per liter to the gas station went broke. By reducing excise taxes to reduce this potential growth to 2.5–3 rubles. for gasoline and 4-4,5 RUB diesel fuel" — this is a sad calculation drive one of the sources of "Kommersant" in a major oil company.