MOSCOW — Russia’s government has raised the export duty on crude oil to $179.9 per ton. The decree, signed by prime minister Mikhail Fradkov, comes into effect on October 1, the government's press service reported.

The price of Urals oil averaged $56.77 per barrel during a period of monitoring – from July 1 to August 31. Based on the results of the monitoring and the formula for calculating the oil export duty, it was set at $179.9 per ton.

The export duty on light oil products could be raised to $133.5 per ton at the end of next month, $71.9 for heavy oil products. Alexander Sakovich, deputy chairman of the finance ministry’s customs department, told RBC last month commenting on a possible review of the export duty: “Raising the customs duties to a new high would not hit oil producers, with oil prices rising and oil companies getting profits of $100 per ton.”

On August 1, the Russian government raised export duty on crude oil and oil products from bituminous materials to $140 a ton. On August 23, the export duty on light oil products were raised to $106.6 per ton, $57.4 for heavy oil products.

The government’s decision was prompted by a sharp rise in gasoline and diesel fuel in Russia. Officials want to persuade Russian oil companies to refine oil in Russia instead of exporting it, which would bring fuel prices down.

Last Wednesday, Russian finance minister Alexei Kudrin said the finance ministry planned to correct the export duty on oil and perhaps oil products to curb inflation. He noted that high world oil prices were driving up the price of oil on the Russian market. The Russian government makes efforts to curb the trend. In the first half of this year, it controlled fuel prices on the domestic market through a series of measures including raising export duties on oil products.

On Friday, the state duma lower house of Russian parliament passed a statement on measures to curb rising fuel prices. Deputies recommended several amendments to the 2005 budget, including up to RUR 4 billion (around $140.6 million) in subsidies to regional budgets to compensate costs connected with an increase in fuel prices, and allocating up to RUR 7 billion ($246 million) to the defense ministry and some other government departments. Lawmakers also proposed changing the formula for calculating export duties on oil and oil products. They suggest that the formula should be based on a two-month international monitoring.