Protecting the domestic market of oil products
The state abandoned regulation of retail prices for "popular" gasoline brands AI-92 and AI-93
The decision was taken by the Ministry of Energy of the Republic of Kazakhstan. Petrol AI-92 and AI-93 are excluded from the list of petroleum products, which are subject to state regulation of prices. According to market experts, the transition to the new exchange rate gave rise to market a conflict: the high dollar exchange rate and the inability to link the value of the ruble and tenge resulted in a rise in the cost of gasoline of popular brands.
In addition, it was likely that because of the lower cost of gasoline in Kazakhstan traders in neighboring countries could active, where the price of fuel was higher.
In connection with a risk of fuel shortages on the domestic market of Kazakhstan, and given that the transition to a free exchange rate, imports of gasoline to Kazakhstan practically stopped (because of the disadvantages of supply), as a result was adopted this unpopular but necessary decision.
According to experts of the Committee of Oil and Gas Industry of the National Chamber of Entrepreneurs "Atameken", 30% (1 mln. Tons - in fact 2014) of the country's demand in gasoline is covered by imports and paid for in dollars. This situation may persist until 2016, until the completion of the modernization of oil refineries in Kazakhstan.
The increase of the volume of oil refining from 14.3 million tons per year to 18.5 million tonnes per year (an increase of 29%) is expected by the time of commissioning of upgraded domestic refineries. The increase in the production of motor gasoline is expected to double, diesel fuel - almost half, jet fuel - more than twice the level of today's generation volume (up to 957 thousand tons).
The prices of LLP "KazMunayGas Onimderi" will serve as price indicators of market prices after the abolition of state regulation of gasoline AI-92 and AI-93. This company is an affilate of "KazMunayGas - refining and marketing". Its network covers 325 petrol stations, leading activities under the brand name "KazMunayGas".
In order to prevent overpricing at the gas stations of other companies, currently Mazhilis considers amendments to the Law "On oil turnover". The package provides for changes in sales of petroleum products at petrol stations by two persons on the basis of the contract of commission (commission) on franchising.
It is expected that the abolition of state regulation of gasoline AI-92 will allow businesses to keep their positions in the market, without losing sales, jobs, etc.
According to experts of the Committee of oil and gas industry and a number of industry associations, deregulation has positive impact on the uninterrupted supply of petroleum products - including those in remote areas – it will improve the quality of fuel, it will create the conditions for increased employment.
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