BAKU, Azerbaijan, Sept. 30
Trend:
The Ministry of Energy of Kazakhstan does not participate in talks regarding purchases of additional volumes of diesel fuel from Russia and the conditions for these deals, Trend reports, referring to the statement of Vice-Minister of Energy of Kazakhstan Asset Magauov at a briefing in the Central Communications Service.
The representatives of the department agreed in general that they would provide assistance and make recommendations to reserve volumes for Kazakhstan in the balance sheets of oil refineries of the Russian Federation. There is an agreement on 100,000 tons.
"At the moment, Kazakh importers are already negotiating on imports. The price in the Russian Federation is formed taking into account market conditions. Depending on their quotations, both the wholesale price and the export price, linked to world quotations, change in the domestic market. The current delivery price for October will depend on the situation on the global oil market. The price of delivery to Kazakhstan will depend on Brent and diesel fuel quotes. We usually import a lot of winter diesel fuel. In 2020, its price was 260 Kazakh tenge (61 cent) per liter. But there is a price difference between summer and winter fuel," Magauov said.
He also refuted the upcoming rise in the price of fuel imported from Russia.
"Indeed, diesel fuel prices in Russia are around 300 Kazakh tenge (70 cents) per liter, but when calculating import prices, it is impossible to automatically add transportation costs to the Russian price and get Kazakh prices,” the vice-minister noted.
“The terms of trade between Russia and Kazakhstan are without indirect taxes. Excise duty on petroleum products and VAT take a very high share in the price. The excise tax in Kazakhstan on imported diesel fuel is 540 Kazakh tenge ($1.27), and 55,000 Kazakh tenge ($129.17) in Russia. Practically, 1/6 of the share in the price is excise duty," said Magauov.
"Accordingly, 300 Kazakh tenge (70 cents) per liter should be cleared of VAT, excise taxes, and, approximately, calculate what order of prices will be in Kazakhstan. I think it will depend on the outcome of the negotiations between the companies," he said.