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Kazakhstan Minister of Oil and Gas Sauat Mynbayev explained the reason behind high prices for local flights, Tengrinews.kz reports from the government meeting in the Majilis (lower chamber of the Parliament). Answering a question of one of the deputies about the constant raise of air fares, Mynbayev said that Kazakhstan is facing deficiency of air fuel. Kazakhstan lacks 20 percent of required air fuel. The situation is made more complicated by Russia limiting air fuel exports from time to time. "At times when we Russia makes air fuel available, whatever air company wants it, they bring it in because no one in particular has any exploitation rights on import this fuel. When there are administrative limits for export of air fuel from Russia, we bring those 20 percent from anywhere we can get it. It is understandable that no air companies and airports want to export the fuel at such high cost. They ask us to provide them with fuel, and we do it. We have imported fuel and KazMunaiGas is now left with those 20 thousand tons (20 percent) and cannot sell it, as the companies refuse to buy it at such high price," Mynbayev said. He noted that he sees the way out in Oil and Gas Ministry setting price ceilings for air fuel only if the mechanism is formed to provide for a return of the losses incurred by KazMunaiGas, when it imports expensive fuel. Mynbayev also added that Kazakhstan will be able to fully provide itself with air fuel, when all three Kazakhstan refineries are upgraded.
Kazakhstan Minister of Oil and Gas Sauat Mynbayev explained the reason behind high prices for local flights, Tengrinews.kz reports from the government meeting in the Majilis (lower chamber of the Parliament).
Answering a question of one of the deputies about the constant raise of air fares, Mynbayev said that Kazakhstan is facing deficiency of air fuel. Kazakhstan lacks 20 percent of required air fuel.
The situation is made more complicated by Russia limiting air fuel exports from time to time. "At times when we Russia makes air fuel available, whatever air company wants it, they bring it in because no one in particular has any exploitation rights on import this fuel. When there are administrative limits for export of air fuel from Russia, we bring those 20 percent from anywhere we can get it. It is understandable that no air companies and airports want to export the fuel at such high cost. They ask us to provide them with fuel, and we do it. We have imported fuel and KazMunaiGas is now left with those 20 thousand tons (20 percent) and cannot sell it, as the companies refuse to buy it at such high price," Mynbayev said.
He noted that he sees the way out in Oil and Gas Ministry setting price ceilings for air fuel only if the mechanism is formed to provide for a return of the losses incurred by KazMunaiGas, when it imports expensive fuel. Mynbayev also added that Kazakhstan will be able to fully provide itself with air fuel, when all three Kazakhstan refineries are upgraded.
