ASTANA, Kazakhstan, July 3. The maximum wholesale prices for liquefied petroleum gas (LPG) from manufacturing plants have been increased from 33,600 ($75.01) to 40,320 Kazakh tenge ($90.02) per ton (excluding VAT) starting from July 1 in Kazakhstan, Trend reports.
Additionally, retail prices for liquefied petroleum gas have increased by 4-6 Kazakh (around $0.0089-0.013) tenge per liter, depending on the region.
As noted by the Ministry of Energy of Kazakhstan, the increase in prices aims to meet the population's demand for LPG and stimulate its production. With the established maximum wholesale price of 33,600 Kazakh tenge ($75.01) per ton (excluding VAT), the production cost of LPG depending on the plant ranges from 42,000 ($93.77) to 72,000 ($160.74) Kazakh tenge per ton.
In 2022, LPG production in Kazakhstan decreased by 400,000 tons or 10 percent compared to 2021. However, during the same period, LPG consumption in Kazakhstan increased by 400,000 tons, reaching 1.8 million tons (a 28 percent growth compared to 2021).
The Energy Ministry justified that as one of the main reasons for the production decline is the lack of investment attractiveness. Manufacturing plants have been selling LPG below production costs, which has contributed to the reduction in output.