Putin signed the law on the right of the government to raise duty on petrol up to 90%

© RIA Novosti / Michael Clientgenerated in Photobacterium of the Russian Federation Vladimir Putin. Archival photoPutin signed the law on the right of the government to raise duty on petrol up to 90%© RIA Novosti / Michael Clientgenerated the image Bank

Russian President Vladimir Putin signed a law granting the government the right to raise the export duty on gasoline to 90% from the duty on oil, should be published on the portal of legal information of the document.

The document will enable the government until the end of 2018 to introduce an export duty for light oil, commodity and directly distilled gasoline up to 90%, explained earlier Deputy Minister of Finance of the Russian Federation Ilya Trunin. A similar measure was used in 2011, said he.

This right the government can use, for example, in the case of rising gasoline prices, despite previous agreements with oil companies.

The law States that the rates of export customs duty for light and medium distillates, benzene, toluene, xylene, lubricating oils, naphtha and commercial gasoline should not exceed 90% of the duty rate on oil for all of the calendar months falling during the period from 1 August to 31 December 2018. This provision comes into force after 10 days from the day of official publication of the law.

Now the export duty on light oil products, commercial gasoline and oil is 30% of the rate of duty on oil, straight-run gasoline — 55%.

The law also exempts from customs duties the oil, including oil and gas condensate mixture, which is produced in the field under the use of TEI (tax on extra income). This exemption will apply in respect of deposits, related to the first and second group, said RIA Novosti Deputy Chairman of the Committee on budget and taxes Leonid Simanovsky. The first group includes new fields in Eastern Siberia with the proficiency to 5%, in the second field, benefiting from the exemption for export duty.