Russia's MinFin proposes pegging reverse excise on oil to fuel supplies to domestic market - sources

MOSCOW. Nov 3 (Interfax) - Russia's Finance Ministry has proposed to change the formula for calculating the reverse excise on oil by adding a requirement for gasoline and diesel fuel supplies to the domestic market, several sources familiar with the text of a bill drafted by the ministry told Interfax.

The ministry proposes to add a new deduction to the reverse excise formula that will reduce the receivable reverse excise if an oil refinery's shipments of Class 5 gasoline and diesel to the domestic market in a given tax period amount to less than 40% of its light oil products output.

The reduction would amount to 390 rubles per tonne for tax periods from January through August 2024 and 250 rubles per tonne beginning in September 2024.

The change in formula would not apply to companies in which the state owns more than a 25% stake.

The bill also proposes to reinstate the damper fuel subsidy to its former amount effective October 1. This subsidy was slashed by half in September, but the government later decided to reinstate it to the former amount.

The ministry also proposed to extend the discount on the price of Urals crude to Brent in the price of the export alternative for diesel fuel when calculating the damper until the end of 2026, like for gasoline. It is currently limited to 2023.