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(bloomberg)
-- Russia, the world’s largest oil producer, may lower the export duty for heavy
crude to 10 percent of the standard rate as it seeks to stimulate
production.
A government commission headed by Deputy Prime Minister Igor
Sechin approved the Energy Ministry proposal, which would extend the discount
for heavy, or viscous, oils for 10 years from July 1.
The lower duty
would save companies $100 million a year at current production levels of heavy
crude and could provide as much as USD1.3 billion in annual tax savings if
output of that grade increases according to Energy Ministry
forecasts.
Heavier crude grades yield less lucrative products such as
gasoline and diesel compared with lighter blends and typically contain more
sulfur. |
