The Moscow authorities will allow the use of alcohol in gasoline production to increase fuel supply, following the country’s crisis caused by Ukrainian drone attacks on refineries, according to The Moscow Times.
The Ministry of Finance has prepared amendments to the Tax Code that will eliminate the excise duty on denatured ethyl alcohol used in the production of AI-92 gasoline.
Oil refineries increase alcohol content
The measure aims at the profitability of gasoline production using alcohol and is necessary in case of insufficient gasoline supply on the market, Interfax sources explained. According to them, the Ministry of Finance has introduced the changes in a package of materials for the second reading of the budget law for next year, which is currently being examined by the State Duma.
In practice, oil refineries will be allowed to increase the alcohol content in gasoline to 10% (currently, it does not exceed 1.5%). According to the Ministry of Energy’s calculations, this will increase the fuel supply on the domestic market by 100,000 tons per month.