Kazakhstan, Astana, May 5 / Trend , K. Arinova/
Prices on lubricants are not expected to see traditional price rise in Kazakhstan this spring, an expert at a large trading company engaged in lubricants sale told Trend .
"There is no traditional price rise this spring, on the contrary, the prices has fell 5 to 7 percent," expert said.
He said there are two main reasons for lowering the price of fuel. "The first is the decline in demand for petroleum products which occurred despite the start of the traditional spring increase in the price of fuel. This is due to the reduction of transit cargo through the territory of Kazakhstan," the anonymous source said.
He also said this year farmers significantly reduced the sown areas that consequently led to a decline in the purchase of diesel fuel during this period.
"Constructions have ceased and construction companies have also reduced the purchase of fuel for the transport of construction materials. In short, the global financial crisis affected retail market of petroleum products," the expert said
He said, as a whole, sales volumes of petroleum products in country's retail market fell 30 percent of all trading companies," the expert said.
The second reason is the declining prices of fuel are supply of cheaper Russian gasoline. They sell popular gasoline brands at dumping prices at $350 per ton while prices in the Kazakhstan market with major trading companies are $460 per ton.
The expert said 30 percent of demand for high-octane fuel in Kazakhstan is covered by Russian import.
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