Go to ...

The Newspapers

Gathering and spreading news from various Russian Newspapers

The Newspapers on Google+The Newspapers on LinkedInRSS Feed

Saturday, March 17, 2018

“The state Duma and the Federation Council approved the rise in price of gasoline”

In the state Duma and the Federation Council approved amendments to the Tax code envisaging an increase from 1 April 2016 the excise tax on gasoline and diesel fuel. The Finance Ministry has warned that a litre of 92-octane gasoline could rise by 2.3 ruble, but overall prices will remain within inflation.

photo: Kirill Iskoldsky

According to the law, the excise rate on automotive diesel will rise by two cents (in gallon / liter), diesel fuel – for one ruble. At the same time “to prevent the interest in illegal production” of gasoline increased rates of excise duty on straight-run gasoline, stated in the explanatory note to the document.

The Deputy Minister of Finance Yuriy Zubarev stressed that raising fuel excise was a forced measure aimed at mobilising revenue for the Federal budget. “If the current global prices on energy carriers and at the current exchange rate of the ruble to the end of the year, the volume of shortfall in income may exceed 2 trillion rubles. According to preliminary calculations, it can reach 2.6 trillion,” warned the official. According to the Finance Ministry, the increase in excise duties can replenish the state Treasury in 2016 of almost 90 billion rubles, Interfax reports.

Read the story: anti-Crisis plan in action: the petrol price will rise before April 1

Zubarev promised that rising gasoline prices will remain within inflation. For example, a liter of 92-octane gasoline could go up somewhere on 2.36 ruble. “With the retail price of gasoline 34-35 rubles per liter increase in the price will be 6.5-7%. The maximum possible increase in prices due to excise tax will be within the projected level of inflation, namely 7-8%”, – said the Deputy Minister. In his words, “the maximum negative effect on the level of retail prices will occur only if the manufacturer will fully pass this increase on to the consumer”.

If retail gasoline prices in 2016 will exceed the rate of inflation, the state Duma will require the government to make proposals on compensations for certain categories of the population. This was stated by the speaker of the lower house of Parliament Sergei Naryshkin during the discussion of the bill, RIA Novosti reported.


Related posts:
Named the city of Russia, where the heaviest fell, real estate prices
E-certified dairy farmers called "madness"
Ukraine has banned the export of nearly 250 Russian companies
The welfare of the United States is impossible without money from the rest of the world


More Stories From Economy