Oil rich Kazakhstan is planning to cut tariffs on the export of crude oil by one third in order to help domestic producers, energy minister Sauat Mynbayev said today.
In a move to reduce soaring oil prices in their domestic market, the Kazakh government had introduced an export tariff in May. This way they boosted their state revenue while helping their domestic fuel market. However, with the drop in oil prices, the tariff started eating into the profit margins of domestic producers.
As per the proposal by the energy minister, the government is considering dropping the duty to $139 per ton from the current levy of $210 per ton.
The duty is adjusted every quarter to keep pace with the fluctuations in global prices. Mynbayev has said that this may change with revisions of tariff taking place as often as on a biweekly or monthly basis.
Kazakhstan has some of the world's largest oil reserves, concentrated in the western parts of the country.
Information from The Associated Press website.
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