Law ranking heavy fuel oil as medium distillate comes into effect
The law ranking heavy fuel oil as medium distillate has come into effect.
The bill on introduction of amendments into the second part of the Tax Code of the Russian Federation was approved by State Duma of Russia in the third reading on 24 July 2019 (Bill No 752627-7, in the part of adjusting the “damping mechanism” parameters). Russian President signed the bill into law on 30 July 2019.
From 1 April 2020, all dark oil products including heavy fuel oil are acknowledged as excisable and are ranked as medium distillates. That measure will let prevent sale of fake medium distillates as heavy fuel oil or vacuum gasoil.
When using medium distillates as fuel for production of heat and electricity as well as for bunkering of ships and/or structures, excise duty coefficient 2 is applied.
From 1 January 2015, sulfur content in any ship fuel used to power vessels operating in the Baltic and the North Seas should not exceed 0.1% according to IMO restrictions. IMO’s global 0.5% sulphur cap came into effect on 1 January 2020.