BAKU, Azerbaijan, Jan. 4
Trend:
Transition to online trading of liquefied petroleum gas (LPG) in Kazakhstan in accordance with the law "On gas and gas supply" began in 2019, Trend reports.
Over three years (2019-2021), the volumes of liquefied gas sold online gradually increased, and from January 1, 2022, a 100 percent transition of LPG trading via the commodity exchanges was carried out (except the sale of LPG for industrial consumers who use it as a feedstock for the production of petrochemicals and subscribers who consume LPG through group reservoir installations).
The online sale of LPG creates equal and non-discriminatory conditions for all market participants and allows the purchase of the necessary volumes of LPG directly from manufacturers.
The consumption of liquefied petroleum gas in Kazakhstan is growing every year. At the same time, LPG production volumes haven’t grown increase, remaining at the level of previous years.
The transition to online trading will allow balancing the price of the LPG on the basis of supply and demand, which will attract investment in the creation of new production facilities.
Besides, market mechanisms have a positive effect on the development of competition, reduce the influence of unproductive intermediaries on the market, and create favorable conditions for the development of small and medium-sized enterprises.
Before the transition to online trading, the price of liquefied petroleum gas was unprofitable for producers due to its sale at a price lower than its cost.
As of January 2022, suppliers purchased 17,406 tons of liquefied petroleum gas from producers for the Mangistau region (96.5 percent of the allocated according to the Delivery Plan).
On December 20-24, 2021, five trading sessions were held online, during which the price of liquefied petroleum gas was formed on the basis of supply and demand.
So, the average wholesale price for January supplies of liquefied gas to the Mangistau region amounted to 133,126 tenge ($300) per ton or 78 tenge (18 cents) per liter.
At the same time, the retail price in the cities of Aktau, Zhanaozen, as well as in the Mangistau region was 100-120 tenge (23-27 cents) per liter.
In general, the trading sessions in January passed in a regular mode, the market mechanism adjusted the needs of the regions with the necessary volumes of the LPG, which are being sent to the regions.