The Implications of Tax Maneuver: Production of Oil and Petrochemicals

Abstract

A tax maneuver in the oil and oil refining industries contributed to some changes in the pattern of production of petrochemicals: the total volume of oil refining decreased, while the volume of production of motor gasoline increased somewhat. It is to be noted that the tax maneuver had an effect on the pattern of exports of petrochemicals, too: with duties increased on residual oil its exports fell dramatically, while with export duties reduced on commercial gasoline, directly distilled gasoline and light and medium distillates their exports increased. Reduction of export duties on diesel fuel brought about growth in its share in the total exports of petrochemicals.