KMG comments the situation in petroleum products retail market

As you know, there are 3 major refineries which annually produce about 1.9 million tons of gasoline AI-92 and 4 million tons of diesel fuel in Kazakhstan. Annual consumption of gasoline AI-92 is about 2.8 million tons and diesel fuel - 4.6 million tons. Historically, the gap between production and consumption was covered by the supply of petroleum products from the Russian Federation. Russia and Kazakhstan sign the indicative annual balance that sets the amount of fuel duty-free imported from Russia to Kazakhstan. Supplied petroleum products' volume above the line will be subject to export duty in Russia. In order to avoid exceeding the indicative balance of oil in 2014, a single operator for the supply of petroleum products from the Russian Federation was determined "KazMunayGas Onimderi" LLP (hereinafter - KMGO). Indicative balance of petroleum products in 2014 is 470 thousand tons of diesel fuel and 670.8 thousand tons of Ai-92. But by May of the current year instead of the planned 263.8 thousand tons Kazakhstan has been imported 306.8 thousand tons of Ai 92. Without the restrictions imposed by the state, this would lead to the fact that in autumn Kazakhstanis were forced to pay for petrol the price including tax. In late July of this year the ban on imports from Russia was withdrawn due to the current market situation.