Ministry of Finance wants higher petrol prices

The Ministry of Finance of Belarus plans to increase the rates of excise duties on motor fuel.

BelaPAN news agency has learnt it from a representative of the oil refining sector.

According to him, the proposal is explained by the need to increase fiscal revenues. The excise duties may grow 20% on petrol and one third on diesel fuel.

The excise duty makes up a large part in the fuel price. “The excise duty is 14% of the price of a tonne of diesel fuel and from 16% to 24% (depending on the grade) of the price of a tonne of petrol,” the source said.

It should be reminded that fuel prices in Belarus are set by the government. Experts suppose, there’s a risk that the excise duty will be laid on fuel manufacturers amid the government’s efforts to curb inflation.

“We hope our interests in the issue (increasing the excise duty rates) will be taken into account,” the source from the oil refining industry says.

Income from excise duties on fuel makes up a significant part of Belarus’s budget. The documents for the government budget for 2013 expect that the consolidated budget will receive 4.37 trillion rubles from excise duties on motor fuel. The total revenues from excise duties to the budget are expected to reach 16.43 trillion rubles. So, excise duties on fuel make more than 25% of revenues from excise duties to the consolidated budget. The rate of excise duties in total tax receipts of the consolidated budget is about 10%.

At the beginning of 2013, the rate of excise duties on oil products grew 20%. In accordance with amendments to the Taxation Code of Belarus taking force on June, 1, 2013, the rate of excise duties (per tonne) on petrol with the octane rating of 95 and higher was set at 1,231,500 rubles; on petrol with the octane rating from 91 to 95 – 1,544,000 rubles; on petrol with the octane rating lower than 91 – 1,751,100 rubles; on diesel fuel – 991,800 rubles.

Prices of motor fuel in Belarus were increased in January by 4%-6.7% (depending on the fuel type).

Belneftekhim company explained that the prices were reviewed to “partially compensate (manufacturers) for the 20% increase in the rate of excise duties on oil products in 2013 and the four-fold growth of tariffs of rail transportation of oil products as well as the measure to gradually equate prices of goods within the Customs Union”.

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