Russia's oil pipeline monopoly Transneft is seeking a 5.7 percent increase in its average shipping fees from 2007, Russia's Federal Tariff Service said on Tuesday, as Reuyers reports. Denis Volkov, head of the service's department for regulations in the oil and gas sectors, said the service would take a decision in late November or early December.The service regulates tariffs of all Russian natural monopolies and Transneft has in previous years asked for increases in fees below gas monopoly Gazprom or power monopoly RAO UES .In 2006, Transneft's fees rose twice - by 11.3 percent at the start of the year to compensate for inflation and by two percents in September to cover interests on a bank loan, which the firm took to fund a pipeline to Asia.Russian inflation is expected to fall to 6.5-8.0 percent next year from around 9.0 percent this year.
Transneft claims that next year it will not seek an increase exceeding average annual inflation figures but analysts predict the monopoly may ask for more reviews during the year."...we expect Transneft then to receive other increases in course of the year," Deutsche UFG brokerage said in written research.