Russian Parliament Approves Tax Changes to Combat Fuel Shortages and Price Hikes
Overview of Recent Tax Amendments and Fuel Market Measures
Background: Fuel Shortages and Price Increases
MOSCOW, June 24 (Reuters) - Russia's parliament approved on Wednesday amendments to the Tax Code aimed at tackling growing fuel shortages due to Ukrainian drone attacks on oil refineries, while also offering subsidies on fuel imports, pegged to Indian delivery costs and prices.
The country's regions have been experiencing shortages of gasoline and diesel in the past few weeks, leading to some fuel price increases and long queues at filling stations.
Key Tax Code Amendments
Blending of Poor-Quality Fuel
One of the tax amendments allows usage of poor-quality fuel in blending straight-run gasoline with other components, according to the parliament's website.
Stabilising the Domestic Market
"This is a very important law. It is aimed at stabilising the situation on the domestic market and increasing the supply of motor fuel, both through domestic production and imports," Deputy Finance Minister Alexei Sazanov told lawmakers.
"Ultimately, saturating the market with motor fuel will lead to price stability," he said.
Delaying Equipment Modernisation
Other changes include delaying certain equipment modernisation at refineries while preserving some tax benefits.
Additional Government Measures
Export Bans and Restrictions
Diesel Export Ban Considerations
Russia has also considered a diesel export ban, Deputy Prime Minister Alexander Novak said on Tuesday.
Existing Gasoline and Jet Fuel Export Bans
Russia has already banned exports of gasoline and jet fuel.
Impact on Production and Exports
Russia's gasoline output last week was around 90,000 metric tons a day, down about 25% from the daily average in June 2025, industry sources said.
According to LSEG data and market sources, its seaborne oil product exports were down about 15% in the first half of June compared to the first half of May, due to unplanned refinery maintenance after repeated drone attacks.
Fuel Imports to Address Shortages
Last week, four industry sources said Russia was set to import fuel by sea in June as it seeks to manage the gasoline shortage.
(Reporting by Reuters; Editing by Emelia Sithole-Matarise)
