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Kazakhstan cuts down oil export duty

19 March 2015 [15:00] - TODAY.AZ

/By AzerNews/

By Sara Rajabova

The Kazakh government has reduced the oil export duty from $80 per metric ton to $60, reads the governmental decree published on March 19.

Export duty for heavy distillates, gasoil, liquid fuel, black oil, lubricants, bitumen, residues of petroleum oils or oils obtained from bituminous minerals were reduced from $112,59 per metric ton to $60 per metric ton.

The decree came into force from the date of its first official publication – since March 19.

Vladimir Shkolnik, Kazakhstan’s energy minister earlier announced that country plans to reduce the oil export customs duty.

The rates of export duties were developed based on the average oil price at $540 per one metric ton or less.

Moreover the governmental decree said if oil prices decrease to $138.6 per metric ton, oil export will become unprofitable.

Oil export duties were reduced following oil prices fall in the world market. The average cost of the oil production amounts to $50 per barrel in Kazakhstan.

Kazakh government is grappling with economic difficulties due to the sharp fall in global oil prices and hard economic situation in Russia, its biggest trade partner. The dramatic fall in global oil prices complicated the economic situation in Kazakhstan, which is heavily dependent on oil revenues. Kazakh economy strongly hurt after the oil prices fall about 50 percent.

Since mid-2014, the oil prices drastically dropped from $100 per barrel to about $50 per barrel. Oil prices started to fall after supplies increased by certain countries such as Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries and a lackluster global economic growth.

URL: http://www.today.az/news/regions/139328.html

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