On April 1st the excise on gasoline and diesel fuel was increased as was the subsidized electricity consumption rate in Russia, the US has revised its program for the development of the coal industry, while the UK introduced changes to the taxation regime for oil and natural gas projects: these and other topics are found in the Analytical Center’s new review of fuel and energy sector regulations in Russia and around the world in Q1 2016.
Experts are predicting an increase in the retail prices of gasoline following the increase in the excise on gasoline and diesel fuel from April 1 (for Class 5 automotive gasoline the excise went up by RUB 2,600 per ton (RUB 2 per liter); for diesel fuel it went up by RUB 1,143 per ton (RUB 1 per liter) and for straight run gasoline it went up by RUB 2,600 per ton). Experts estimate that in the end prices are going to go up by roughly the same amount the excise went up by. However, because of seasonal fluctuations of prices for petroleum products in the domestic market and because of changing pricing conditions in the global market, the increase in the price of gas at the pump may be gradual while the final amount the prices go up by may end up being either a little higher or a little lower than the increase in the excise.
Among the latest developments in Russia the specialists note the approval of Silk Road Foundation investments in Yamal LNG and the national bank of geological information about natural resources. The global developments considered in the review include new requirements for the localization introduced in Brazil to support the national oil services sector, India’s new policy for licensing land plots and developing hydrocarbon deposits, as well as the US and EU’s stance on the lifting of sanctions from Iran.
The section analyzing the sanctions against Russia’s energy sector that first appeared in the report last year is featured in this year’s report as well. An interesting fact to know: March 31, the UK’s treasury set up a special office on the application of financial sanctions, whose job is to explain, introduce and monitor the implementation of financial restrictions.
For more details see the review Changes and Trends in the Regulation of the Fuel and Energy Sector in Russia and the World in Q1 2016.
The EY Moscow Oil & Gas Center took an active part in preparing the Review as per usual.
For other reviews see Publications.