The Federal Antimonopoly Service (FAS) of Russia supports the idea of adjusting the oil damper. As the head of the department, Igor Artemyev, said in an interview with Energy Policy magazine, it is necessary to use non-fixed prices.
“The damper became a necessary measure that allowed us to stabilize the situation associated with sharp price surges in the oil market. But at the present time it may require a small adjustment of its values, which, in my opinion, should be as close as possible to the current market prices, ” explained the head of the Federal Antimonopoly Service.
The damper mechanism works in such a way that if If export prices for fuel are lower than domestic prices, oil companies pay extra to the budget. In July, according to Artemyev, the budget was thus replenished by 44 billion rubles, and in August this amount should have amounted to 29.7 billion rubles.
“Given such a situation on the oil product market, retail prices for motor fuel are assessed as stable,” – emphasized the head of the FAS. Artemyev also added that “the economy of domestic petroleum product supply and export has now leveled off and is on track.”
The damper was introduced in 2019 as a mechanism to reduce the volatility of fuel prices in the domestic market. Starting this year, the damper for gasoline is calculated as 68% of the difference between the export price and the conditional price established in the law on the domestic market (53.6 thousand rubles per ton for 2020).
As a result, if the export price exceeds the conditional domestic price, then the state pays the oil companies. And thus stimulates the supply to the domestic market. In the opposite situation, oil workers have to pay to the budget.
Why the damper has ceased to suit everyone
Last year the damper was beneficial for oil companies. At relatively high prices, the budget paid them about 300 billion rubles. But in 2020, prices collapsed and the damper went negative. This exacerbated the oil companies' refining losses. According to Reuters, for six months the oilmen paid about 236 billion rubles to the budget on the damper. And in general for the year, according to the Ministry of Finance, payments may amount to 500 billion rubles.
At the same time, according to the calculations of the Ministry of Finance, in 2021 the budget spending on the payment of the reverse excise tax will amount to 108 billion rubles. In 2022 – 217.5 billion rubles, and in 2023 – 313.2 billion rubles. Nevertheless, Rosneft asked the government to change the formula for calculating this mechanism.
The company proposes two possible changes. For example, instead of a notional internal price, a company would like to use the current exchange prices. Besides, Rosneft considers it necessary to supplement the damper accrual scheme. : ///
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