Russian oil companies received 1.815 trln rubles from budget under damping mechanism in 2024, 1.588 trln rubles in 2023

MOSCOW. Jan 13 (Interfax) - Payments from the Russian budget to oil companies under the fuel damping mechanism amounted to 139.3 billion rubles in December, according to materials on the formation and use of additional oil and gas revenues of the federal budget published on the Finance Ministry's website.

Oil companies received 1.815 trillion rubles from the budget thanks to the damping mechanism in 2024.

As previously reported, total damping payments for 2023 amounted to 1.588 trillion rubles, 2.171 trillion rubles for 2022 and 674.5 billion rubles for 2021. In 2020, due to market conditions, oil companies paid 356.6 billion rubles into the budget under the fuel damping mechanism. The budget paid 282.2 billion rubles to oil companies under the damping mechanism in 2019.

The government provides damping payments as subsidies to oil companies to restrain domestic fuel prices during periods of high export netbacks.

Oil companies also received payments from the Russian budget for the excise tax on crude oil in December amounting to 137.6 billion rubles. For 2024, the total reached 1.624 trillion rubles compared to 1.173 trillion rubles for 2023, 971.3 billion rubles for 2022, 564.6 billion rubles for 2021, 221.6 billion rubles for 2020 and -142.4 billion rubles for 2019.

The reverse excise tax on oil is paid from the budget as one of the measures to support the oil refining industry. It provides for a tax rebate based on oil excise duties depending on the volume of fuel production, the location of the refinery, the modernization of the plant and other factors.