KazTransOil plans to raise tariff for oil transportation to domestic market

The basis for changing the approved tariff is a change in the average monthly nominal wage of one employee by type of economic activity in the region, which has developed according to statistics.

KazTransOil JSC has sent an application to the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan to change the approved tariff for the regulated service for transporting oil to the domestic market of the Republic of Kazakhstan through the system of trunk pipelines of KazTransOil JSC for 2021-2025, the press service of the company reported. According to the press service, the draft tariff for the service of transporting oil to the domestic market of the Republic of Kazakhstan amounted to 5,012.42 tenge per ton per 1000 km, which is 656.86 tenge, or 15%, higher than the approved tariff level. At the same time, in accordance with the legislation of the Republic of Kazakhstan on natural monopolies, the final decision on approving the amended tariff and determining its level is made by the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan. The current tariff of 4,355.57 tenge per ton per thousand kilometers was put into effect in 2021. The company explained that the basis for changing the approved tariff before its expiration is a change in the average monthly nominal wage of one employee by type of economic activity in the region (city), which has developed according to statistics. In accordance with the legislation of the Republic of Kazakhstan on natural monopolies, tariffs for regulated services should not be lower than the cost of costs necessary for the provision of services, and take into account the possibility of making a profit that ensures the effective functioning of the subject of natural monopoly," the experts explained. KazTransOil JSC is a subject of natural monopoly in the following areas: services for the transportation of oil and (or) petroleum products through trunk pipelines, with the exception of their transportation for the purpose of transit through the territory of the Republic of Kazakhstan and export outside the Republic of Kazakhstan; electricity transmission services; services for the production, transmission and distribution of thermal energy; wastewater disposal services.