Ministry of Economic Development: the average price of Urals oil in September was $92.08 per barrel
Quick Look
- In September, the average price of Russian Urals oil reached $92.08 per barrel amid rising world prices due to the conflict in the Middle East.
- The Ministry of Finance forecasts an increase in additional oil and gas budget revenues in October to 289.46 billion rubles.
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Why It Matters
The price of Urals is calculated for tax purposes and often exceeds the actual market value. The damper mechanism is used to compensate oil companies to control domestic fuel prices.
At the end of August, the average price of the main Russian export grade of oil Urals, calculated for tax purposes (exceeds the real price), amounted to $92.08 per barrel. The Ministry of Economic Development reports this.
This is 1.37 times higher than in August. This result is associated with a significant increase in world oil prices due to the escalation of the conflict in the Middle East.
The September rise in prices will affect the tax situation this month. The Ministry of Finance expects 289.46 billion rubles in additional oil and gas revenues from the federal budget in October.
However, in September, revenues decreased by 22 percent compared to the same period a year earlier, to 452.4 billion rubles, mainly due to an increase in payments for the damper mechanism. The latter provides for compensation to oil companies for containing fuel prices on the domestic market.
Open Questions
- How long will the rise in oil prices last?
