Vladimir Putin is preparing a report on new indicative oil prices

27.06.2023       

The Russian government is preparing a report to the country's President Vladimir Putin on clarifying oil price indicators used to tax oil and gas companies. This was reported to TASS in the press service of the Cabinet of Ministers.
Previously, the head of state instructed to clarify the existing indicators and establish additional ones. It is necessary to do this in order, among other things, to more correctly determine the cost of Russian oil when taxing the industry.
"Currently, a report is being prepared for the President of the Russian Federation," the government's press service said.
Now, when taxing, to determine the average price of Urals oil in Russia, quotes from the Argus agency are used. It uses the Urals settlement price for European ports (Augusta and Rotterdam), although Russian oil is not currently traded there. Because of this, the price declared by Argus differs from the market one, and the declared discount is much higher than the actual one, which ultimately affects the taxation of companies and, as a result, budget revenues.
TASS

Price indicators for products for the oil and gas complex
Agency "TEK-Rating" based on surveys of oil and gas complex enterprises, forms price indicators for the main types of industrial products. Prices are updated monthly and depending on the market situation.
The Agency adheres to the following principles in selecting positions for the formation of indicative prices: regularly and produced in series.
- Prices are indicated for the most demanded (basic) standard sizes.
- Other prices for other standard sizes can be obtained by extrapolation.
Pipes — the main type of product regularly purchased by oil and gas companies and occupying a significant share in their total purchases. Agency "TEK-Rating" successfully conducted a direct survey of oil and gas companies and formed a Rating of pipe manufacturers. Based on the experience of preparing the rating, the publication of indicative prices began with pipe products.

Indicative prices for products for the oil and gas complex