Damper subsidy to oil refiners in Russia set to decline 4.5% to $1.7 B in June
Damper payments, a form of subsidy to oil refineries, are set to decline by around 4.5% to 150 B roubles ($1.7 B) in Russia in June from May due to global gasoline price rises and a weaker rouble.
The decline in subsidies is advantageous for the state budget.
The damper is a payment to refineries to encourage them to sell their product on the domestic market instead of exporting it at a higher price.
Reuters calculations consider domestic supplies of gasoline and diesel on the domestic market in June of 2.1 metric MMt and 4.9 metric MMt, respectively.
The calculations showed that the damper payments for gasoline declined in June from May by around 16% to 21,865 roubles per tonne, while the subsidies for diesel grew by 2.6% to 16,595 roubles.
The damper payments to oil refineries for the first half of the year are set to rise to 1 T roubles from 600,000 B roubles in the same period in 2023.
($1 = 87.5000 roubles)
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