Oil producers expect to raise the amount of compensation received by them for the regulation of domestic prices for petrol. Following the instruction of the Deputy Prime Minister Dmitry Kozak, a draft bill on the reduction of the “conditional domestic prices” for fuel used in the calculation of subsidies is already being developed. They discuss a decrease in domestic prices by about five thousand roubles - to 50.4 thousand roubles per ton of petrol and 45 thousand roubles for diesel fuel. The final decision has not yet been taken.

      According to VygonConsulting estimate, due to such changes, the amount of compensations allocated to oil producers from the budget will grow by about 200 billion roubles a year.

       According to the law on tax maneuver adopted in summer, half of the difference between the export price and conditional domestic price (the share will make up 60 percent in 2019) is compensated to oil companies from the budget.

      Find more about Russian laws and consult our attorneys.

      Now the domestic prices area 56 thousand roubles per ton for petrol and 50 thousand roubles for diesel fuel.

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