Kazakhstan plans to abolish gasoline price regulation
Kazakhstan is planning to abolish regulation of prices for gasoline. The Ministry of Energy intends to gradually abandon regulation of the cost of fuel and lubricants to eliminate price disparities with neighboring countries and reduce the risk of gray exports. A document published on Open NPA website says.
According to the ministry, Kazakhstan has the lowest fuel prices among its neighboring states, leading to illegal exports and shortages in the domestic market.
For instance, a liter of AI 92 gasoline costs 205 tenge in Kazakhstan, compared to 288 tenge in Russia, 385 tenge in Kyrgyzstan, and 489 tenge in Uzbekistan. Diesel fuel is also cheaper — 295 tenge, compared to 355 tenge in Russia, 427 tenge in Kyrgyzstan, and 528 tenge in Uzbekistan.
The Ministry of Energy of Kazakhstan believes that a gradual liberalization of prices, while taking measures to support socially vulnerable groups, will help modernize the oil refining sector, create jobs, and ensure stable fuel supplies for the domestic market.
Officials state that they will not allow a sharp rise in fuel prices.
«The transition to a sustainable pricing model will not only aid in modernizing the sector but also ensure greater stability in the domestic market,» the ministry explained.
