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​Services of Atyrau refinery go up by one and one-half times in price

October 22 2015, 16:12

By Saule Tasboulatova

Image 0As of October 1, the price of processing of 1 ton of crude for suppliers of Atyrau Refinery grew by 55%. This instantly provoked the price jump of AI-92 and diesel fuel at “KMG-Onimderi" gas stations.

The price of crude oil refining increased not only at Atyrau Refinery (from 13 224,5 to 20 501 tenge), but also at the Pavlodar petrochemical plant (from 9 054,3 to 14 895 tenge). This information was posted at website of the Committee on regulation of natural monopolies and protection of competition.

The Ministry of Energy explained the reason for increase with implementation of investment programs on Atyrau and Pavlodar Refineries.

According to the economist Olzhas Khoudaibergenov, the increase of established prices for processing could provoke the increase of fuels and lubricants prices:

– Most likely, the increase will take place in other areas. When crude is sold to refinery or wholesalers. And the final price of fuels and lubricants at gas stations. However, I have no data for all areas, therefore it is difficult to speak about accurate figures, but allegedly the price of fuels and lubricants can grow by 10-15 tenge during a month or two.

However, the Kazakhstan Fuel Association (KFA), where we also addressed for comments, is of another opinion. Here is what KFA's lawyer Zhaksylyk Zhankalov said:

– The government increased the cost of processing services, so that wholesale supplier wont' be able to take away all the margin. This is also done with the purpose of quick "beating off" investments directed on refinery upgrade. In my opinion, there will be no price increase related to that. In any case, the price will be formed depending on profitability of import from Russia, considering that we bring 40% of fuels and lubricants from there.

And it is also necessary to consider a seasonal factor. For example, as of November the refineries are overloaded, processing volumes increase, but consumption drops, therefore the price of Russian gasoline in December-January drops respectively. So price drop is possible, as it was observed last year.

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