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14:58 GMT +3 hours19 December 2014
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Kazakhstan Hikes Crude Export Duties 50 Percent

© RIA Novosti. Boris Babanov
Business
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The Kazakhstan government hiked crude oil export duties by 50 percent on Wednesday, in a bid to cut soaring oil product prices in the central Asian state.

ASTANA, April 3 (RIA Novosti) - The Kazakhstan government hiked crude oil export duties by 50 percent on Wednesday, in a bid to cut soaring oil product prices in the central Asian state.

Export duties will be raised to $60 per ton from the current price of $40 by the government resolution, which comes into force in 10 days.

Kazakhstan has suffered a shortage of oil products after closing its three major refineries for modernization until 2016. It currently imports oil products from Russia, paying with deliveries of crude oil at prices below the price for which it exports oil to other states, Kommersant reported in January.

The government's decision to boost export duties means more crude will stay in the republic. Astana wants to pump that oil to Chinese refineries and bring back refined oil products at prices below the cost of Russian supplies, Kommersant said.

The Kazakh government is also considering building an oil product pipeline at the border with China to boost refining under tolling contracts, the paper said.

Kazakhstan has the world’s ninth-largest proven crude reserves with an estimated capacity of 39.8 billion bbl by the end of 2012, according to BP data.

 

Tags:
oil, Astana, Kazakhstan