Fuel costs rising again to hit Russian fishing fleet

Mazut, which has been alternative for expensive diesel fuel so far, has been appreciating thus aggravating the fishermen's problems with high fuel costs, reports www.fishnet-russia.com (www.fishnet.ru) with reference to Rybatskaya Gazeta.

As of 1 February 2009 the export duty for oil has been reduced to 100.9 USD per tonne (80.3 USD per tonne of light oil and 43.2 USD per tonne of dark oil). For comparison, for January 2009 the export duty for oil products has been set at 119.1 USD per tonne (92.6 USD per tonne of light oil and 49.9 USD per tonne of black oil). Export duties are set every month and they are calculated under a special formula on the basis of monthly monitoring of the oil prices on the world market.

The reduction has already resulted into rising oil prices on the Russian market, as export has been growing increasingly more attractive for oil companies.

Due to reduced duties, the proceeds from export of one tonne of oil will be ca.13 USD per tonne up on January 2008, analysts forecast.

Expected growth of the USD rate will also encourage traders to send oil rather for export, than for sale on the domestic market.

The situation has been getting more complicated also due to the difference in export duties for various types of fuel. More specifically, in January 2009 low duties for black oil resulted into a shortage of mazut including vessel fuel on the domestic market.

If the trend persists in the future, the shipowners may face a serious problem of high prices and short supply of comparably cheap mazut chosen by a number of companies as alternative to more expensive diesel fuel.

Meanwhile, in the third week of January mazuts IFO 380 and IFO 180 were appreciating quickly.