---

Exports of Russian fuel oil dropped by 71.2 percent in April following an increase in export duties and maintenance work being carried out at a number of refineries, according to the Russian Energy Ministry.

In the latest report issued by the Russian government, exports of refined products fell in April with fuel oil outflows decreasing by 71.2 percent to 38,493 tonnes per day and exports of gas oil dropping by 19.3 percent to 77,686 tonnes per day. Gasoline exports also fell during the month of April to 7,752 tonnes per day, down by 35.3 percent from 11,987 tonnes per day in March.

Meanwhile, exports of crude oil to countries other than former Soviet republics decreased by 5.8 percent to 51.5 million metric tonnes (377 million barrels) in the first quarter of 2008 compared to the previous year.

Total exports of crude stood at 55.3 million metric tons (405 million barrels) and petroleum products at 27.4 million metric tons (200.8 million barrels) in the first quarter of 2008.

Export tax reached a record $130.1 per tonne for fuel oil and $241.1 per tonne for light products for the April-May period. Russia's export duty is revised on a two-monthly basis and is based on the previous two-month average price for Urals, the country's benchmark export blend.

Earlier this week, Russia's Finance Ministry announced the export tax on heavy products such as fuel oil would be increased from June 1 to $151.10 a tonne. Crude export tax will increase from $340.10 per metric tonne (or $46.40 a barrel) to $398.10 per tonne and light products such as gasoline and butane will be taxed at $280.50 per tonne, 16 percent higher than the previous two-month period.

Oil production in April was 9.72 million barrels of oil per day, the lowest level in 18 months. Output from Russian refineries may decline in 2008 for the first time in ten years as refiners are faced with high costs and aging oil fields.