BAKU, Azerbaijan, April 19. The prices for liquified petroleum gas (LPG) in Kazakhstan may increase by 5-10 Kazakh tenge ($0.011 - 0.022) over the coming months, Almasadam Satkaliyev, Minister of Energy of Kazakhstan said on the sidelines of the a meeting on the socio-economic development of the country chaired by the Head of State, Trend reports, citing Kazakh media.
"Currently, large-scale re-equipment of cars, the transition from gasoline and diesel to LPG is trending. At the same time, the production of LPG in Kazakhstan is extremely limited. We are constantly requesting more volumes from the Tengizchevroil, and redirecting export flows to the domestic market. Kazakhstan's domestic demand right now accounts for tens of thousands of tons. Here is when the prices issue comes up," he said.
According to the minister, with a cost price of more than 70 Kazakh tenge ($0.15), the selling price is currently 50 Kazakh tenge ($0.11).
"Obviously, companies are running at a loss. For comparison: prices in Russia are twice as high - about 120 Kazakh tenge ($0.27), in Tajikistan - 177 Kazakh tenge ($0.39)," Satkaliyev noted.
Recently, Kazakhstan has set a price cap for RON-92 and RON-93 fuel at 205 Kazakh tenge ($0.45) per liter, while the price of diesel will not exceed 295 Kazakh tenge ($0.65).
The cap is introduced in order to eliminate the disparity between Kazakhstan and other neighboring states. This step will enable Astana to reduce the outflow of fuel, which will help to satisfy domestic demand.