Kyrgyzstan: Legal import from Kazakhstan would help meet demand for motor fuel
BISHKEK (TCA) — The tense situation with petroleum products has not been decreasing for several months in Kyrgyzstan. According to the National Statistics Committee, over eleven months of this year, prices for gasoline have increased by 3.5 soms, or 8.8%, and for diesel fuel by 6.9 soms, or 17%. Supply of petroleum products from Russia and neighboring Kazakhstan could improve the situation. Earlier this month, the Oil Traders Association of Kyrgyzstan informed about the delay in signing of an indicative balance of duty-free deliveries of fuel from Russia to Kyrgyzstan. The Association warned of a possible increase in retail prices for fuel by 2.5-3 soms per liter from January 1, 2019. The signing of the document was to take place back in October. The local media predicted a gasoline collapse and discontent of the population, drawing an analogy with the situation in France, where the decision of the authorities to slightly increase gasoline prices turned into violent clashes of tens of thousands of citizens with the police this month. Kyrgyzstan monthly imports an average of 70 thousand to 100 thousand tons of motor fuel. The country’s demand for petroleum products is 90% covered by supplies from Russia and Kazakhstan. The remaining 10% is mainly provided by the Junda refinery in the Chui province and the Jalal-Abad refinery in the south of the country. Agreement reached On December 6, the situation was safely resolved. Kyrgyzstan and Russia signed the indicative balance for duty-free supplies of fuel for 2019. The volume of supply remained the same as for the last year — about 1 million tons, including 460 thousand tons of gasoline, 485 thousand tons of diesel fuel, 100 thousand tons of jet fuel, and 50 thousand tons of oil. However, the terms of the contract provide for a change in the volume of deliveries. In early September, the Oil Traders Association submitted proposals to the 2019 balance with the following forecast indicators: gasoline — 485 thousand tons, diesel fuel — 580 thousand tons, and jet fuel — 130 thousand tons. But the Russian side did not agree to increase the amounts. Rating Thanks to the signed document, conditions have been created for the further stable and reliable duty-free supply of petroleum products, the Association concluded, adding that Kyrgyzstan ranks first in terms of cheap fuel among the countries dependent on its import. According to the GlobalPetrolPrices rating, Kyrgyzstan ranks the 22nd among 181 countries in terms of the cost of gasoline ($0.67 per liter) and ranks first in terms of cheap fuel among import-dependent countries. All other countries in the top twenty are producers and exporters of oil, including Kazakhstan, Turkmenistan, the United Arab Emirates, Iran, and Saudi Arabia. The average price of gasoline around the world is $1.12 per liter. However, there is substantial difference in these prices among countries. As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the U.S....
8 years ago
