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. Last Updated: 07/27/2016

Transneft's Main Tariff Raised 6%

The Federal Tariffs Service said Thursday that it would raise the main tariff for oil pipeline transport by 6 percent for 2008, much less than oil pipeline monopoly Transneft had sought.

Transneft's tariff consists of two parts, the larger of which applies to the price oil companies pay to Transneft's regional subsidiaries for actual transportation.

The remaining element, a much smaller part called a dispatch fee, is what Transneft charges for coordinating the process.

The tariffs service said the larger part would be increased by 6 percent, while the dispatch fee would be increased by 33 percent.

It did not give the average figure for the whole tariff. Transneft declined to elaborate.

The tariffs service also said the tariff on the Baltic pipeline to the country's key Primorsk port would increase by 15 percent.

Transneft had requested an average tariff rise of 20.1 percent next year, the highest it has ever asked for, applying to domestic shipments and exports.

"The increase seems to be too small. In our calculations, we assumed that the average tariff would rise by 12 percent. But it can be the first rise of many, as it was with Transneft previously," said a Moscow-based analyst at a Western bank.

Traders said the average tariff had yet to be calculated.

"It's too early, the average needs to be calculated. At the moment we can see that the tariff was raised for Primorsk. The dispatch fee was increased by 33 percent, but this is minor," a local trader said.