Gasoline prices rise in Kazakhstan

AI-92 gasoline prices caps in Kazakhstan have risen to 108 tenge per liter, Tengrinews reports. The corresponding document was published by the Ministry of Energy of Kazakhstan.

This is 9 tenge more expensive than the previously set cap of 99 tenge. The current order is dated May 19, 2015 and is effective in accordance with the law of Kazakhstan “On state regulation of production and turnover of certain types of petroleum products” that allows the Kazakh government to set price caps on retail prices of petroleum products in Kazakhstan.

Including VAT, the prices were set as follows: diesel fuel - 99 tenge per liter, AI-80 - 89 tenge per liter, AI-92/93 - 108 tenge per liter. The prices of AI-80 gasoline and diesel fuel remained unchanged.

The previous state order dating 10 February 2015 was followed by expert predictions of a further decrease in the gasoline prices. Prior to that, the price of AI-92 was 109 tenge, and even earlier - 115 tenge per liter.

According to the head of the Oil Development Department of the Ministry of Energy Kuandyk Kalmurzin, the prices on gasoline rose because of the rise in the global oil prices.

"The reason is simple: the legislation sets forth the formula known to any interested person. (…) It is all tied to the world oil prices," he said at a press conference in Astana.

"If the global prices go down and fall below $60 per barrel, then, based on the formula, the gasoline prices will be lowered, too. There is no danger in that, we only welcome the fact that we live in the legal field and act according to the laws of the Republic of Kazakhstan," he said.

At the same time, the ministry stressed that the new caps did not meant that retail prices had to immediately go up to 108 tenge. "This does not mean that the state forces everyone to set the price to 108 tenge. (…) But one has no right to exceed the level of 108 tenge per liter," he said.

Reporting by Renat Tashkinbayev, writing by Dinara Urazova, editing by Tatyana Kuzmina