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Kazakhstan Oil and Gas Ministry is not allowed a large fuel prices raise

16 april 2012, 16:51
0
Chairman of Kazakhstan Agency on for Natural Monopolies Regulation Murat Ospanov. Photo courtesy of pm.kz
Chairman of Kazakhstan Agency on for Natural Monopolies Regulation Murat Ospanov. Photo courtesy of pm.kz
©RIA Novosti
©RIA Novosti
Kazakhstan Oil and Gas Ministry is not allowed a large increase of fuel prices, Tengrinews.kz reports citing chairman of Kazakhstan Agency for Natural Monopolies Regulation Murat Ospanov as saying at the government meeting in the Majilis.

“On April 8 we signed a decree to increase fuel prices for the average of 5.6 percent. The decree has been approved by the Ministry of Oil and Gas and the Ministry of Economic Development and Trade. This decision of the Agency is based on the big and complicated formula. It depends on the world’s oil price. According to Oil and Gas Ministry, the price has to be much higher, but as some of the components of this formula have not been confirmed, the increase has made 5.6 percent,” Ospanov said, answering the deputies’ questions on the growth of prices of popular petrol brands.

Besides, the chairman of the Agency confirmed that the deficit at Kazakhstan fuel market is caused by shortage of local fuel. Over 35 percent of AI-92 and AI-93 petrol are currently exported from Russia. At the same time the chairman of the anti-monopoly agency thinks that it is impossible to restrain the prices for long.

“If we retain the prices - and we have already had such a situation - this will create a deficiency and there will be social tension again,” Ospanov commented the deputies’ questions about the possibilities of further price raise.

By Assel Satayeva

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