Moscow Revamps Downstream Economics for Russian Refiners

摘要

Russia's downstream economics are undergoing a major overhaul that has pitted oil refiners against Moscow. The government won the latest standoff last week after both sides struck a deal that guarantees ample supplies of affordable gasoline and diesel to domestic consumers, thereby averting a government threat to slap additional duties on exports of crude and oil products. The deal reached late Wednesday calls for all oil firms to lower their refinery gate prices back to June levels and to boost monthly deliveries of motor fuels to the local market by 3% compared to a year ago. The government and Russian oil firms have been at loggerheads as Moscow prepares to phase in a series of sweeping tax changes for the oil industry starting Jan. 1, 2019. By forcing oil refiners to accept a deal that effectively chokes domestic margins, Moscow wants to avoid a backlash over pump prices, which have again crept upward over the past two months due to seasonal turnarounds and a rising export parity.