Kazakh ministry proposes oil product export regulation
Kazakhstan's Energy and Mineral Resources Ministry has proposed a set of measures to regulate the export of refined oil products, the head of the ministry, Sauat Mynbayev, said according to Interfax.
"As far as control over exports is concerned, we need some time, say 3-4 days, to analyze the issue. We may have to develop an action plan aimed at regulation of oil products exports especially in the light of the new crude oil export duties," he said during a Monday conference call in the government in Astana.
"We can expect efforts to re-export refined product," he said.
Prime Minister Karim Masimov has given a week for the issue to be examined. "The trend is not good. World prices [on refined product] are rising, and it's impossible to explain that to the public. I think the players are working to drive up prices, this trend must be halted," Masimov said.
Refined product exports in the first quarter were 50% higher than in the same period a year earlier. "We looked at the countries where those gasoline exports are going. The exports in January-March totaled 42,000 tonnes, of which 36,000 tonnes to CIS states, including 24,000 tonnes to Kyrgyzstan," Mynbayev said.
"Evidently there is an element of re-export here, and the measures undertaken must deal with this aspect," he said.
Refining volumes at the nation's three refineries in the first four months of the year increased 5.4% year-on-year to 4.31 million tonnes. Oil and condensate production rose 6.3% to 23.568 million tonnes.
It was reported earlier that Kazakhstan will enact an export duty on crude oil effective May 17. The export duty is contained in a government resolution of April 8, which amends a resolution of October 15, 2005.
The export duty has been set at $109.91 per tonne and $27.43 per tonne for exporters who pay the rent tax on exportation of crude oil and gas condensate. The export duty on heavy distillates (liquid fuel), oil coke and bitumen has been set at $82.2 per tonne.
The duty will not apply to resource users producing under resource use licenses that exempt them from payment of export duties.