Head of Kazakhstan Anti-Monopoly Agency explained prices raise

Chairman of Kazakhstan Agency for Natural Monopolies Regulation Murat Ospanov explained the recent prices surge, Tengrinews.kz reports from the government meeting in the Majilis (Lower Chamber of the Parliament). Besides the earlier announced reasons of air and railroad fares raise, head of the Agency told about the objective of the authority standing behind the increase of the services cost. The main goal was to avoid inflation growth, he said. “Effect of the regulated services on inflation is annually calculated by the government and all the decisions made in 2011 on changing the prices were responsible for the cumulative impact on thew inflation in the amount of 0.77 percent, with the annual threshold set to 1.58 percent. The dynamics of the rates of monopolies has not exceeded the threshold level,” he told the MPs. Speaking of the growth of prices of passenger transportation by railroad, Murat Ospanov said that this process “complied with the decisions of the state budget commission permitting an annual increase of the rates for passengers transportation of up to 10 percent”. The recent increase of prices of domestic flights made by Air Astana company that has caused much discontent among the population is, according to Ospanov, a consequence for aviation fuel prices growth. The airline gave the same reasons for the prices growth . “Starting from April 1, 2012 Air Astana raised its prices of domestic flights tickets for the average of 16 percent. The raise was caused by aviation fuel prices growth in 2012,” Ospanov confirmed. Besides increase of the costs for passenger transportation in Kazakhstan, the prices for cargoes railroad transportation were raised as well. Starting from April 1, Kazakhstan Agency for Natural Monopolies Regulation raised the fares 15 percent up. Head of the Agency explained this increase as well. “This will help fund modernization of 625 kilometers of the railroad, purchase and modernization of 141 locomotives, capital repairs of 47 locomotives cars, purchase of 14,000 train cars and capital repairs of 1,000 train cars,” he stated. By Assel Satayeva