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Ban on export of petroleum products worsens situation for Kazakh refineries

12 August 2013 18:08 (UTC+04:00)
Ban on export of petroleum products worsens situation for Kazakh refineries

By Aynur Jafarova

Ban on the export of petroleum products introduced by the Kazakh government has even more worsened the situation for domestic refineries, source at the Kazakh oil refinery told Trend.

"Ban on the export of petroleum products introduced by the country's government exacerbates the situation even more for domestic refineries associated with overstocking of the tank farms. The ban is an unprofessional decision that is illogical and against the interests of our country," the source said.

According to the source, officials in the offices are not monitoring the situation with the amount of fuel consumed in the country as well as the imports and exports.

Since January 2013, Kazakh tank farms overstocked with their own products.

"All our depots are filled to capacity, whereas foreign oil depots are printed and the management of depots charges us almost daily for responsible petroleum storage. If the regulation is competent and timely, a ban on the contrary would have been withdrawn. Then the excess of our oil production could be exported and benefits received to the state budget and taxes," the sources say.

Meanwhile, according to the report, now is the most favorable time to lift the ban on the export of Kazakh oil, as neighboring Russia has significantly increased the prices of petroleum products.

Three oil refineries are operating in Kazakhstan, which is located in Shymkent (country's southern part), Atyrau (western part) and Pavlodar (northern part).

Kazakhstan's government has introduced a ban on the export of petroleum products, in particular light distillates and products, kerosene, gas oil and other petroleum products, except special gasoline, light distillates and home heating oil, starting from July 1, 2013. The decision came into effect on July 1.

According to the government's decision, quantitative restrictions to the amount of 100,000 tons were set for the export of light distillates.

There is a ban in Kazakhstan on the export of some products such as light distillates and products, kerosene, gas oil as well as other petroleum products. These restrictions were imposed in January 2013 for a period of six months but did not apply to special gasoline products and domestic heating oil.

As is known, a ban on the export of certain types of petroleum products is in effect in the Central Asian country till June 1. Every six months Kazakhstan extends the prohibition.

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