Russia’s New Oil Product Excise Taxes to Take Effect on July 1

Russia, which links its excise tax on motor fuels to their environmental impact, will change the rates for gasoline and diesel on July 1, according to the country’s tax code.

The tax on low-sulfur Euro-5 gasoline will drop to 5,143 rubles ($156) a metric ton from 6,822 rubles a ton. The excise tax on Euro-4 gasoline will be unchanged, while rates for more sulfurous grades will increase.

Euro-5 gasoline and diesel have a maximum sulfur content of 10 parts per million and Euro-4 has a limit of 50 ppm. Euro-3 gasoline can have as much as 150 ppm sulfur, while Euro-3 diesel has a ceiling of 350 ppm.

The following table shows scheduled excise tax changes from now until the end of 2014. Figures are in rubles per ton.

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              Current    July-Dec.    Jan.-Dec.    Jan.-Dec.
              rate       2012         2013         2014

Gasoline
Below Euro-3  7,725      8,225        10,100       11,110
Euro-3        7,382      7,882         9,750       10,725
Euro-4        6,822      6,822         8,560        9,416
Euro-5        6,822      5,143         5,143        5,657

Diesel
Below Euro-3  4,098      4,300         5,860        6,446
Euro-3        3,814      4,300         5,860        6,446
Euro-4        3,562      3,562         4,934        5,427
Euro-5        3,562      2,962         4,334        4,767

Source: Russian Tax Code Article 193
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To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net