ZERO DUTY ON LPG FROM RUSSIA

Date of publication: 30.01.15

From February, duty rate on LPG imported from Russia reaches zero. This means that Polish customers should expect further decrease in LPG prices.

The new monthly rate of export duty on Russian fuel will take effect from February. According to the Tariff, the excise tax on LPG drops to zero and it is not charged in the case when prices are below $ 490 per tonne. According to Russian media, now the average price of LPG is $ 385 per tonne.

– This time we experienced the largest decrease of export duty on liquid gas from Russia – says Przemyslaw Podgorski, CEO of UNIMOT SA. – Recently, the zero duty remained during the period from January to November 2009. Removal of the excise duty was to help Russian producers after falling gas prices to avery lowlevel , not witnessed in many years. This situation resulted in the price of LPG in Poland, which then fell below 1.90 zł per liter.

Currently, because to a sharp decline in LPG trading on the international market there is no excise duty. This situation will certainly affect the price of LPG at the Polish stations, which for several months experiencing regular fall. Let me remind you, that in the past the Russian treasury, fetch even $ 300 duty per tonne of LPG, which did not raised the LPG prices in Poland. Therefore, in this case it is worth to forecast prices with caution . We shall expect to keep prices of LPG at the current low level and even continue the downward trend. This situation ,once again confirms the competitiveness and attractiveness of LPG for traditional fuels – says Przemyslaw Podgorski.

59,3 percent of LPG which is imported to Poland, comes from Russia. This type of fuel is also imported, from Kazakhstan, Belarus and Lithuania. In January this year, per 1 tonne LPG, the tax was 48,2 $.