Kazakhstan, Astana, Feb. 16/ Trend K. Konirova/
Price for air kerosene in Kazakhstan is affected by not only prices of neighbor markets but mediators' squeeze, a representative of Trade House KazMunayGas JSC told Trend anonymously in Astana.
"It is nonsense for such a big oil-producing country as Kazakhstan while kerosene costs more than in Europe who faces energy deficit," Trade House representative said.
The issue on Kazakhstan's price for air kerosene being 30 percent higher than in Europe was discussed at one of the governmental meetings recently.
According to official information, prices reached $1,300-$1,400 per ton in summer of 2008. Prices dropped $1,000 per ton in late 2008. Presently, prices per ton of air kerosene total in average $700-800, while this index totals $500 in Europe.
According to Trade House KazMunayGas JSC, three Kazakh refineries produced 399,200 tones of air kerosene in 2008. Pavlodar petrochemical plant produced roughly 80,000 tones, Shimkentnefteorgsintez - 274, 700 tones, Atira - 44, 600 tones.
"Kazakhstan imports missing volumes from three neighbor countries, including Russia, Turkmenistan and Azerbaijan. This volume totaled 166, 900 tones of air kerosene in 2008, i.e. nearly half of the volume we produce," Trade House representative said.
Presently, Kazakhstan's three refineries meet only 45 percent of domestic demand for air kerosene, Mukhit Kubayev, head of Civil Aviation Committee under the Ministry of Transport and Communication, said.
The rest 55 percent are imported from Russia, Turkmenistan and Azerbaijan.
High prices depend on not only impact of prices on the markets of neighbor countries but a great number of mediators between three Kazakh refineries and air carriers, Trade House KazMunayGas JSC said.
"All of our three plants produce air kerosene mainly from oil which is delivered by so-called owners of resources. Just they fix prices for goods from refineries," a representative said.
Then they sell it to a second-hand dealer at a price including cost of raw materials and processing at a refinery plus their margin. Second-hand dealers, in their turn, impose expenditures for transportation and their profit. Airports are the last in this line which sell air kerosene to air carriers at last.
"Besides above mentioned, airports are certain to add expenditures for its keeping in oil storages, discharge and refueling to an air kerosene price. Function sharing occurred in the system of civil aviation as soon as the Soviet Union collapsed. Airports carry over all oil storages as a result. Air carriers, having no opportunities to keeping oil reserves, pay for rendered services which finally fell on passengers' shoulders," the interlocutor said.
If there were not any mediators between refineries and air carriers, a price for air kerosene would be much lower. But solving of the issue is a prerogative of the government, a representative of Trade House said.
Reconstruction of existing three refineries might be another way to solve the issue which allowed producing more air kerosene, specialists of the Civil Aviation Committee under the Ministry of Transport and Communication said.
"We could have solved problem of demand for this product if another, the fourth plant would be built in Aktau which head of the government told about a month ago, the Civil Aviation Committee said.
Volume of air kerosene production at three Kazakhstan's refineries must be increased up to 417,000 tones in 2009.
"But it is insufficient because Kazakhstan's demand for air kerosene will increase almost twice - 895,000 tones per year in the nearest two years," the Civil Aviation Committee said.
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