Kazakhstan unveils reasons for shortage of oil and lubricants in the country

12:50, 1 September 2014

ASTANA. KAZINFORM - After the devaluation of the national currency the cost of imported fuel increased, which influenced the decline in imports of fuels and lubricants and that was the cause of their deficiency in Kazakhstan, CEO of the KAZENERGY Association Asset Magauov said.

He made the remarks at a meeting of the Association with the participation of representatives of the Ministry of Energy of the Republic of Kazakhstan, the National Chamber of Entrepreneurs, KazMunaiGas NC, Kazakhstan Fuel Association, wholesalers and retail distributors of petroleum products, Kazinform has learnt from Trend.az.

Magauov reminded that Kazakh oil refineries do not cover all the needs of the domestic market. He said that about 35-37 percent of needs in light oil are met through imports from Russia, namely AI-95/98 in the amount of 74,000 tonnes, AI-92/93 - 578,000 tonnes, AI-80 - 28,000 tonnes , diesel fuel - 378,000 tonnes.

Also, there is a restriction on the import of petroleum products from Russia, he noted. "But at present, restrictions on imports lifted and companies can import petroleum products into Kazakhstan," said Magauov. "Measures on regulation of the situation of petroleum products were taken with studying of all the possible consequences - both positive and negative," he stressed.

"In order to limit the import, the government decided to appoint a single operator with the right of import in the person of KazMunaiGas-Onimdery," he added. "Losses from the negative difference between prices of purchase and prices of sale at gas stations suffered the current state single KazMunaiGas-Onimdery JSC operator," said Magauov.

Currently in Russia the cost of gasoline AI-92 petrol stations based on the exchange rate of the ruble versus the tenge is 159 tenge per liter ($ 1 - 182 tenge), diesel fuel - 171 tenge per liter, KAZENERGY says.

At the same time Asset Magauov reminded that Kazakhstan market is heavily dependent on imported Russian fuel.

"Thus, with increasing fuel prices in Russia the decision to raise the cost of gasoline AI-92 was logical," Magauov noted. "This measure was necessary to stabilize the situation and align the difference between the wholesale prices in the Russian Federation and the Republic of Kazakhstan."

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