The Association of Oil Traders of Kyrgyzstan (ANK) has proposed a number of measures to reduce prices for fuels and lubricants.
According to the ANK, according to information from international experts, in October 2021, oil price quotations will continue to grow, which will ultimately affect the increase in the selling prices of Russian refineries.
“Throughout 2021, oil traders are doing everything in their power to curb the growth of prices for fuels and lubricants in the fuel market of Kyrgyzstan. The companies’ margins during the year did not exceed 1%, despite this, companies regularly purchased 2-month stocks of oil products, ”the statement says.
The ANC noted that in the event of a further increase in selling prices, local oil traders will be forced to raise retail prices for fuels and lubricants. Otherwise, further containment of prices will lead to unprofitability of oil traders up to the termination of the network of filling stations.
However, in order to further restrain domestic prices for gas stations in the country, the Association of Oil Traders made a proposal to the government of the Kyrgyz Republic: to apply the mechanism of floating tax regulation in the period from October to December 2021:
– temporarily reduce the excise tax rates;
– to exempt imports and supplies of diesel fuel from VAT.
“These measures will reduce retail prices for gasoline – by 3.70 soms per liter and for diesel fuel by 4.8 soms per liter from the current price level. It is important to note that if the above measures are implemented according to the preliminary calculations of the Association of Oil Traders of Kyrgyzstan, the planned tax revenues for 2021 to the state budget from the oil sector will be fulfilled in full, “the Association stressed.
Source: Kyrgyz National News Agency