Belarus can offset decline in gasoline export revenue - Belneftekhim
MINSK. May 4 (Interfax) - The losses that oil refineries in Belarus will experience from the higher export duty on gasoline can be offset with exports of other products, a representative of the Belneftekhim refining concern told Interfax.
"Belarusian refineries produce a wide assortment of oil products that are in demand abroad, not just gasoline. Therefore, we will be thinking about what to substitute for gasoline exports if, under the new circumstances, they are no longer profitable," he said.
The domestic market will be the priority, he said.
"There are no grounds for saying that there might be oil product shortages on the domestic market. The refineries will produce gasoline and diesel fuel in volumes sufficient to meet our domestic demand," he said.
The representative declined to estimate the financial impact on the refineries of the higher gasoline export duty.
It was reported earlier that Belarus followed Russia's lead and raised the export duty on gasoline to 90% of the crude oil export duty, which rose to $453.1 per tonne effective May 1 from $423.7 per tonne in April. The export duty on gasoline is $408.3 per tonne, 44% higher than in April and 34% higher than it would have been if gasoline remained grouped with other "light oil products."
Belarus exported 1.370 million tonnes of refined oil product in the first two months of 2011, 15.2% less year-on-year, including 1.118 million tonnes outside the CIS (21.7% less) and 0.252 million tonnes to the CIS (33.7% more).
Belarusian refineries produced 0.814 million tonnes of gasoline in the first three months of the year (up 31.5% year-on-year), 1.322 million tonnes of diesel fuel (up 17.3%) and 1.219 million tonnes of fuel oil (up 15.5%).
Under the agreement Belarus and Russia signed in Moscow on October 9, 2010, Russia will deliver crude oil to Belarus duty free and Belarus will pay Russia the duties it collects on export of oil products that refineries in Belarus produce from Russian crude.