Tariff on Venezuelan methanol exports to EU to jump in 2014: report

23 September 2013 23:16  [Source: ICIS news]

HOUSTON (ICIS)--Venezuela will have to pay more than twice the tariff that it currently pays on methanol exports to the EU beginning next year, a newspaper in Caracas reported on Monday.

The tariff on methanol exports from Petróleos de Venezuela (PDVSA) to the EU will be raised from the current 2% to 5.5% in 2014, according to a report in El Universal.

PDVSA's experts fear that the increased methanol tariff would cost the company an additional $8.8m (€6.5m), based on an impact study conducted by the petrochemical industry.

The Venezuelan state-owned petrochemical company Pequiven and its joint ventures send about 700,000 tonnes of methanol a year to Europe for about $252m. That amounts to almost a third of Venezuela’s methanol production at its three plants, which total 2.37m tonnes/year in annual capacity.

The new tariff touches not only Venezuela, but also other Latin American countries, the report said.

Pequiven, through the Ministry of Petroleum and Mining, has requested that the government seek a tariff exception for Venezuela from the EU.

Experts also recommended seeking the support of Mercosur, the South American trade bloc of countries.

($1 = €0.74)

By: Lane Kelley
+1 713 525 2653

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