Kazakhstan explains reasons for increased petrol prices

Photo: Kazakhstan explains reasons for increased petrol prices / Oil&Gas

Astana, Kazakhstan, Aug. 27

By Daniyar Mukhtarov - Trend:

A petrol price increase in Kazakhstan was a necessary action to prevent the shortage of petroleum products in the country, Kazakh Deputy Energy Minister Uzakbai Karabalin said during a press conference Aug. 27.

"Being in the Eurasian Union and having open borders, we must balance the prices to avoid deficit," Karabalin said. "But it does not work at once. We should gradually move," he said.

"And today we are meeting the needs of those who run risks and provide us with oil products," he added. "And at the same time, we keep a reasonable minimum price."

Karabalin said at a press conference in July that the cost of regulated kinds of lubricants will not increase in Kazakhstan until late August, however, the cost increased.

"Unfortunately, we could not avoid this," he added. "Many vehicles from Russia, Kyrgyzstan were observed in our border regions. They were fueled with cheaper Kazakh petrol. An accident at one of the Russian refineries also affected the volumes."

At present, there are 95,000 tons of AI 92 petrol in the tank farms.

AI 92 petrol price has increased by 13 tenge per liter (from 115 to 128 tenge) in Kazakhstan since August 21.

AI-92 petrol price may increase by 10-15 percent in Kazakhstan, Deputy Director General of KazMunaiGas - Processing and Marketing Erlan Koibagarov said at a press-briefing earlier.

He stressed that there are two factors stipulating a possible increase in petrol prices - devaluation, as well as the seasonal increase in prices on petroleum products.

"The prices may increase by 10-15 percent according to our expert assessment. This will be a fair price," he said.

The official exchange rate is 182 KZT/USD Aug. 27.

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