ASTANA, Kazakhstan, March 19. The export duty
rate on oil in Kazakhstan took a little leap in March, rising to
$78 per ton from $77 per ton in February, Trend reports via Argus
Media.
“The average price of the Kebco (cif Augusta) grade and Northern
Dated Brent during the price monitoring period from December 20 to
February 20 was $78 per barrel compared to $77 per barrel during
the previous monitoring period, according to Kazakhstan's Ministry
of Finance,” noted Argus Media analysts.
Since September 2023, the monthly export duty rate for oil and petroleum products in Kazakhstan changes with every $1 per barrel fluctuation in the average global price, instead of the previous $5 per barrel change, within the range of $25–$105 per barrel.
Argus Media also mentioned that, with an average market price of oil between $25 and $105 per barrel, the export customs duty (ECD) rate is calculated using the following formula: ECD = Sr * K, where ECD is the export customs duty rate for oil and petroleum products in US dollars per ton; Sr is the average market price of oil for the preceding period; K is the adjustment factor of 1.
If the average market price of oil is below $25 per barrel, the export customs duty rate is zero. For prices above $105 per barrel, export duty rates range from $115 per ton to $236 per ton.
“The average market price is determined monthly by Kazakhstan’s Ministry of Finance based on the monitoring of Kebco and Northern Dated Brent prices from the past two months. The result of the monitoring is mathematically rounded to the nearest whole number according to adjustments,” added Argus Media analysts.
CIF (CIF Augusta) is a term used in international trade to refer
to one of the payment methods in a contract. CIF stands for "Cost,
Insurance, and Freight," which translates to "cost, insurance, and
freight."
When referring to "CIF Augusta," it means that the seller of the
goods (for example, oil) is responsible for the cost of the goods,
their transportation, and insurance until the port of Augusta
(which is located in Sicily, Italy), the destination port for the
shipment. In a CIF contract, the seller must cover all expenses
related to the delivery of the goods to this port and insure the
cargo for the entire shipping journey.
Thus, "CIF Augusta" in the context of oil deliveries indicates that
the price of the oil includes the cost of the oil itself,
transportation costs, and insurance until the port of Augusta.
Argus Media is a leading global provider of market price indicators
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is known for its comprehensive coverage of various industries,
including oil, gas, electricity, petrochemicals, and metals.
