Minister of Energy of Kazakhstan proposes to abandon regulation of wholesale prices for jet fuel

The Minister of Energy of Kazakhstan Kanat Bozumbayev spoke about the pricing mechanism for Kazakhstan-made aviation fuel, Kazinform reported.

“Jet fuel prices are regulated by the market based on supply and demand. At the same time, prices for jet fuel in the domestic market of Kazakhstan are commensurate with prices for Russian-made kerosene and reflect market realities. At the same time, we note that the level of prices for imported Russian jet fuel is a constraining factor for the growth of wholesale prices for Kazakhstani kerosene,” Mr. Bozumbayev said at a government meeting.

He proposed to abandon the regulation of wholesale prices for jet fuel.

“Given the high dependence and fluctuations of the petroleum product market on external factors, we believe that the introduction of regulation of wholesale prices for aviation fuel is impractical. In addition, it should be noted that in accordance with the Treaty on the Eurasian Economic Union (clause 85 of Appendix 19 “Protocol on General Principles and Rules of Competition”), state regulation of prices for petroleum products is not allowed,” the Minister said.

He also noted that, despite the 100% provision of domestic fuel for the domestic market at the expense of its own production, the possible introduction of regulation of wholesale prices for kerosene can lead to a lack of profitability in the import of kerosene in the event of an unexpected stop of any of the refineries.

“This will lead to a decrease or absence of import supplies and, as a result, to the risk of aviation fuel shortage factors in the domestic market of Kazakhstan. Currently, all 3 refineries are operating normally, with daily production of light petroleum products, followed by shipment to the domestic market,” the Minister concluded.

Source – http://lenta.inform.kz/

Leave a Reply

Your email address will not be published. Required fields are marked *