Russia is raising the export duty on petrochemicals, including lubricants, Oct. 1. However, industry insiders dont expect higher international market prices for Russian base oil.
The decree, recently signed by Russia’s prime minister Vladimir Putin, sets the flat export duty rate for lubricants, black oil, rerefined products, petroleum ointments and paraffins at 66 percent of the crude oil export duty, up from the current 47 percent.
Get alerts when new Sustainability Blog articles are available.
We dont expect any international markets price increases of the base oils produced in Russia, Natalia Kuznetsova, base oil trader at Litasco SA, told Lube Report last week. These petrochemical products duty tweaks are common in Russia, and the government relies on them to regulate the supply-demand trends on the domestic market. Litasco is Russian oil major Lukoils international trading and supply company based in Geneva, Switzerland.