The Ministry of Energy of Kazakhstan has published a draft order that abolishes state regulation of prices for petroleum products, including the establishment of maximum prices for their retail sale.
The Ministry of Energy justifies the abolition of state regulation by the fact that prices for gasoline and diesel fuel in Kazakhstan remain among the lowest in the world. This leads to a significant price gap, including with neighboring countries.
"In Kazakhstan, the price of AI-92 gasoline per liter is 205 tenge, in the Russian Federation - 288 tenge, in Kyrgyzstan - 385 tenge, in Uzbekistan - 489 tenge. Diesel fuel in Kazakhstan costs 295 tenge per liter, in the Russian Federation - 355 tenge, in Kyrgyzstan - 427 tenge, in Uzbekistan - 528 tenge. Thus, the difference in prices for AI-92 gasoline reaches from 40% to 138%, for diesel fuel - from 20% to 79%. This provokes a deficit, the impossibility of modernizing the industry, the export of fuel abroad through various illegal schemes," the Ministry of Energy said.
The department intends to move "to a policy of a sustainable pricing model." This involves creating a market balance between supply and demand, eliminating fuel shortages, and stimulating the modernization of the oil refining industry.
At the same time, the Ministry of Energy says that the government will not allow a sharp increase in fuel prices, and government agencies will strengthen control over the market.
"To protect the interests of citizens, social support measures will continue to be provided, and agricultural producers will receive guaranteed access to diesel fuel under transparent schemes and reasonable prices," the department said.
It should be noted that farmers are against the Ministry of Energy’s decision, since it will lead to an increase in the price of diesel fuel, which is an important component of the costs of field work.