KazMunaiGas Head doesnt rule out further decrease in gasoline prices

A further decrease in gasoline prices is not ruled out in Kazakhstan, tengrinews.kz reports, citing Sauat Mynbayev, KazMunaiGas Chairman of the Board as saying February 9.

“When it comes to estimated gasoline prices in the domestic market, the Energy Ministry sets the ceiling price, but doesn’t regulate retail prices at gas stations. In some cases the retail prices are lower than those set by the Energy Ministry. I don’t rule out a further decrease in gasoline prices. Oil refineries have been facing excessive gasoline in stock, with oil companies [in line with applicable legislation] still supplying a set volume to local refineries to be processed”, Mr. Mynbayev told journalists.

However, he emphasized that a further decrease in the gasoline prices only plays into the hand of consumers. “It would be not correct to ask me as head of an oil company if a further decrease in prices is good (…) the company has been hit by the price decline. However, for consumers the falling price is a good factor. We will have to put up with the market prices”, he said.

Back in August 2014 the price for AI-92/93 gasoline grew by 11%; however, starting from December 10, 2014 the price returned to the August level, seeing another slight decrease December 30.

“(…) there is a risk of cheap imported gasoline damaging the country’s oil refineries. However, if imports of the Russian-made gasoline are banned or restricted, there will be gasoline shortages. 30% of gasoline consumed domestically is imported from the neighboring Russia”, Tengrinews.kz reported January 26, citing the country’s Energy Minister Vladimir Shkolnik as saying.