Why the cost of diesel fuel is rising and how it is possible to reduce costs in the production of agricultural products - these issues were discussed at a press breakfast for journalists. Rustem Kabzhanov, Executive Director of the Association "KAZENERGY", as well as representatives of the Department of Agroindustrial Complex and Food Industry of the NCE RK "Atameken".

The main question that interested media representatives was what influences the formation of prices for diesel fuel in the Republic of Kazakhstan.

According to Rustem Kabzhanov, there are several reasons. For example, costs associated with upgrading the refinery sector, as well as increasing the domestic excise tax on diesel fuel for producers.

"The whole economy is changing depending on the world situation. As for prices for diesel fuel, today the retail price "on the nozzle" at the gas station varies from 185 to 187 tenge per liter. Agricultural producers purchase fuel at a discount - liter costs 150 tenge at the plant. About 5 tenge for transportation is added to this price, as well as storage at oil depots - is makes about 161 tenge per liter. This is the average price. The difference with the retail price is about 26-30 tenge, depending on the region" - Rustam Kabzhanov explained.

The speaker noted that Kazakhstan serves 90% of the fuel needs itself. At the same time, the issue of growing prices is raised every year and the appeals of agricultural producers need to be considered point-by-point.

"Requests have always been considered and fuel was provided to agricultural producers. If a particular entrepreneur has not received it, this does not mean that everyone has such a situation" - Kabzhanov said

How can we reduce costs, including diesel fuel, in the production of agricultural products? According to Zhanna Akisheva, Deputy Director of the Department of the Agroindustrial Complex and Food Industry of the NCE RK Atameken, low economic efficiency of growing wheat is observed from year to year. Therefore, it is important to increase yield and take a course towards diversification. 

"The only way to increase economic efficiency is to increase yields per hectare. Harvest land can be used more effectively by diversifying crop areas. Now the market in demand for rapeseed, flax, lentils, chickpeas and forage crops. When growing them, there is practically no need to change cultivation technologies" - Zhanna Akisheva voiced out.​​​​​​​

National Chamber constantly works on the issue of opening up new markets. So, at the end of August, Chinese colleagues are expected to visitthe country to inspect crops such as barley and corn. Farmers, if they get into the register of exporters, will be able to sell their agricultural products to the PRC. Oilseeds are gaining popularity and export orientation, which in turn brings monetary income.   

Another factor that affects the costs of farmers is outdated technology. Many agrarians still use Soviet equipment or new techniques for developing Soviet times, which is morally and physically obsolete. For example, the fuel consumption of "Yenisei" and "Niva" combines in good condition is 5.5 liters per 1 hectare, while modern "VECTOR" or "John Deere" has the consumption of 2.6 liters per 1 hectare.

Expert of the Department of Agroindustrial Complex and Food Industry of "Atameken" Yerken Naurzbekov added that in the south of the country it is possible to diversify available grain areas for high-yield intensive gardens. From 1 hectare of garden it is possible to receive profit up to 8.0 million tenge with an average yield of 40 tons/ha.

 Atameken compared the price of diesel fuel with neighboring countries, our country has the cost lower than in other countries: Kazakhstan - 0.48 dollars / liter (or 165 tenge), Russia - 0.69 dollars per liter (more expensive at 43,8%), Uzbekistan - $ 0.59/liter (+ 22.9%), Ukraine - $ 1/liter (2 times more expensive).

"It is clear that wheat is the most convenient for farmer cultivation, but we must also understand that the situation will only worsen with a yield of 10-12 c/ha. Moreover, barley or oats grown can be converted into meat. It is economically justified to conduct mixed production when the farm is engaged in both plant growing and livestock farming," - Yerken Naurzbekov said.

When asked by journalists about the possible return of state regulation to diesel fuel, Rustam Kabzhanov explained that today the industry operates in a market economy. Having evaluated the markets plants do not refuse discounts, but they work so that not to run at a deficit.

"State regulation had existed several years ago, what did it lead to? There is an agiotage on certain types of fuels and lubricants, this is covered by the media, the people begin to react to this, starting to buy fuel, which it will be able to use only in two months. This situation creates an artificial shortage. It is needed to buy fuel somewherein order to cover it. As a rule, this process takes time, as the procedure must be carried out within the law. The Ministry of Energy of the RK initiates a document that must be signed and waited for entry into force. At this time the people furiously proves that we have a deficit and there is no fuel. And the situation begins to heat up. We began to look for an outlet and it was suggested to let the situation go into the market. When the restrictions were removed, the price grew, but later the situation stabilized, the market adjusted this process itself" - Rustam Kabzhanov added.​​​​​​​ 

Let us recall that earlier issues of increasing the price of diesel fuel were discussed at the site of the central communications center with the participation of the Deputy Energy Minister of Kazakhstan Bolat Akchulakov.