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Kanat Bozumbayev answers the question about possible gasoline price spikes

by May 30, 2018 World Sports

Minister of Energy Kanat Bozumbayev has answered the question about possible gasoline price spikes.

Two key factors can affect fuel market pricing today. The first is the growth of retail and wholesale prices for gasoline in the Russian Federation. The second part – we in Kazakhstan have now created reserves of 1.5 times higher than the needs of our country and in fact our factories and traders need to sell our gasoline. Therefore, there will be a balance here all the time. Our refiners need to sell gasoline, and its reserves are increasing, because the two plants have already been modernized, the catalytic tracking facilities are working, – Kanat Bozumbayev said, answering journalists’ questions on the sidelines of the Majilis plenary session.

According to him, modernization of the refinery gives us high-octane 92 and 95 gasoline in the required volume.

At the end of four and five months, about 90% of the domestic market will be covered with production of Kazakh gasoline and 10% with Russian gasoline. Therefore, the pricing for gasoline in the country will be affected by these two factors. Now, while the price increase in Russia is not fatal, it does not affect our domestic market much, and the factor that we have a big supply of our, Kazakhstan’s gasoline, is more influential. You know, KMG even cut prices, it’s the largest player in this market, and the rest of the players are also watching it. If they raise prices, this does not mean that demand will increase, so there will be some balance between these two factors, � Kanat Bozumbaev added.

Source: Government of the Republic of Kazakhstan