Cancellation of oil export duty will promote reduction in gas prices in Tajikistan

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DUSHANBE, November 18, 2010, Asia-Plus  — If Russia cancels oil export duty for Tajikistan, gasoline prices will reduce in the country, according to the Antimonopoly Agency under the Government of Tajikistan.

The source says introduction by Russia of the export duty on light oil for Tajikistan has led to a 30-percent increase in gasoline price in the country.

We will recall that Russia on May 1 introduced the export duty on light oil for Tajikistan at the rate of 203.7 U.S. dollars per one ton and on June 1, the export duty was raised to 209.1 U.S. dollars.

Tajikistan and Kyrgyzstan had been receiving Russian fuel duty free since 1995, in keeping with protocols to the government-to-government agreements on the establishment of a free trade zone within the CIS area.  However, Russian customs started collecting a duty on oil products exported to Kyrgyzstan on April 1 and to Tajikistan on May 1.

Russia provides the bulk of Tajikistan’s fuel imports.  Some 70 percent of oil products come to Tajikistan’s market from the Russian Federation.   

Tajikistan and Russia have agreed to consider the issue of resumption of duty-free delivery of Russian oil products to Tajikistan.  This issue was one of major topics of the 11th meeting of the Tajik-Russian commission for economic cooperation that took place in Moscow on November 9.  The sides agreed to study that issue by January 2011.  

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