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Sunday, September 22nd, 2019

Minister of Energy explains the refusal to regulate petrol prices

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The Minister of Energy Kanat Bozumbayev explained why it is impossible to return to petrol price regulation.

Of course, we can once again fix the gasoline prices. But where it leads? Importers will not bring their petrol here at a loss. They will start having problems, and a 30% deficit will appear at gas stations. We’ve been through this. Yes, gasoline is bit more expensive, but it’s there. And that is much better than when it’s cheaper but not present. Deficit means bad quality, engines fail. That is why the situation of dependence on Russian markets will remain until we modernize our three refineries, � K. Bozumbayev said today at the Government press conference.

According to him, the first half of 2018 will see the completion of the Shymkent refinery modernization, second half of 2017 � Atyrau and Pavlodar refineries. The Minister promised to personally monitor this process.

I intend to personally monitor this. Last year I have toured all three refineries, gave tasks to the relevant companies, there is financing. The mood is optimistic. We are a bit late, but from last year we’ve increased the pace of work on all three projects. KazMunayGaz keeps it under control, � the Minister said.

After modernizing three refineries, the Minister promises price drops for petrol, but not twice as low as Russia’s.

Prices may change, because they will be under the field of regulation of Kazakhstan’s Government. We undoubtedly can, with our soil users and refinery owners, solve this issue if there is a need. We will have much more influence, � the Minister noted.

Of course we cannot say that our prices will be twice as low as Russia’s. If our prices are twice as low as Russia’s, there will be no petrol and diesel fuel. They will be exported to Russia, because we have open borders, no customs, no problems with movement of goods, including petroleum products. Since we are in the union, our prices will correlate, � he added.

Source: Government of the Republic of Kazakhstan

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