MET for crude oil in Russia will increase by 21% in July/June, Reuters calculated

MOSCOW, July 21 (Reuters) – The Russian Federation’s minerals extraction (MET) tax on crude oil in July could rise by about 20.9% compared to June, to a maximum since April 2022, preliminary calculations reported by Reuters. The minerals extraction tax for oil extraction in July will for the first time since the beginning of the year exceed the estimated amount of tax included in the calculation of the 2023 budget (21,982 rubles per ton). The CP coefficient in the MET formula, calculated on the basis of average oil prices and the ruble/dollar exchange rate for the period from July 1 to July 21, with the last value extrapolated at the end of the month, is 16.4367 against 12.8884 in June. The full MET rate for base oil (excluding exemptions) for July is tentatively RUB 24,755 per tonne, compared to RUB 20,479 per tonne in June. If the daily volume of oil production in July remains at the same level as in June, the revenues to the state treasury from oil MET for July production will increase by about 140 billion rubles (+25%) in relation to production subsidies in June and may amount to about 700 billion rubles. Oil MET payments for July production must be received by the treasury no later than August 28. The value of the mineral extraction tax with maximum benefits, taking into account the specifics of production, may increase to 15,567 rubles per ton in July from 13,274 rubles per ton in June. The increase in the oil production tax in July compared to June is due to the increase in the average quotation of the Urals (+12.5%), the depreciation of the ruble against the US dollar (-8.2%), as well as the increase in the fuel damper in July. The draft budget of the Russian Federation for 2023 took the value of the full rate of tax on the extraction of minerals in oil at the level of 21,981.7 rubles per tonne, tax income to the federal budget for 2023 in the amount of 6.714 trillion rubles (with a urine price of $ 70.1 per barrel to the barul and 68.3 ruble exchange). Below are the data to calculate the MET from January 2022 to July 2023: PERIOD Average Price Exchange Rate, RUB/$ Coef. Cr MET duty *** Urals, $/bl oil ** 2023 JANUARY 49.02 69.2325 9.0241 83.5 15.981 FEBRUARY 49.35 73.0284 9.6112 64.1 15.326 MARCH 48.67 76.0852 9.81 53 70 8 16.259 APRIL 58.97 80.8947 13.6281 71.4 20.187 MAY 53.5 78.9516 11.6461 72.0 17.964 JUNE 55.45 83.1614 12.8884 80.8 20.47 9 L IOc* 62.38 90.5441 16.4367 78.2 24.755 ART 91.26 104.081 30.4108 116.9 43.049 APRIL 71.01 77.9146 16.7203 122.5 26.933 MAY 79.98 6 4.777 16.1272 99.5 23.091 JUNE 90.22 57. 2694 16.505 89.9 22.144 JULY 84.19 58.1515 15.4157 110.7 22.010 AUGUST 75.94 60.3522 14, 0914 1 06.2 20.607 SEPTEMBER 68.61 59.8006 12 2832 104.2 18.606 OCTOBER 71.91 60.9064 13.2804 89 18.856 NOVEMBER 66.69 60.8781 12.0567 85 .5 17.3 89 DECEMBER 50.15 65.4395 8.813 86.8 14.624 * – preliminary calculation for 20 days of July ** – petroleum tax for the minerals extraction tax *** – including Kabdt