Kazakhstan’s Ministry of Energy is considering the phased liberalization of gasoline and diesel fuel prices as part of a broader reform aimed at addressing price disparities with neighboring countries and curbing illegal fuel exports.

The proposed changes have been outlined in a draft document published on the Open NAP portal. The reform would gradually shift fuel pricing from state regulation to a market-based system.

Since May 2024, Kazakhstan has implemented a differentiated pricing mechanism, but the Ministry of Energy acknowledges that state regulation has made Kazakhstan the country with the lowest fuel prices in the region. This disparity has incentivized “gray” fuel exports – illegal cross-border sales – and contributed to domestic shortages of petroleum products.

Currently, a liter of AI-92 gasoline in Kazakhstan costs 205 KZT ($0.39), significantly cheaper than in neighboring countries:

• Russia: 288 KZT ($0.54)
• Kyrgyzstan: 385 KZT ($0.72)
• Uzbekistan: 489 KZT ($0.92)

The price gap is similarly wide for diesel fuel:

• Kazakhstan: 295 KZT ($0.56)
• Russia: 355 KZT ($0.67)
• Kyrgyzstan: 427 KZT ($0.80)
• Uzbekistan: 528 KZT ($0.90)

Price differences for gasoline range from 40% to 138%, while for diesel fuel the gap is between 20% and 79%.

The Ministry of Energy emphasizes that this price liberalization is crucial for addressing the challenges caused by these discrepancies. According to the Ministry, the reform will help:

• Prevent illegal fuel exports.
• Ensure the economic viability of oil production projects.
• Enable expansion of refinery capacity from 18 million to 28 million tons per year.

The modernization of the oil refining sector, spurred by market-based pricing, would also create new jobs and provide additional funding for government programs.

“Phased liberalization of prices with priority support for socially vulnerable segments of the population is necessary. It will create a sustainable system for supplying the domestic market and ensure economic feasibility,” the Ministry’s explanatory note states.

The Ministry has assured the public that the transition to market pricing will be gradual and carefully managed to avoid sharp or sudden price increases. Authorities also promise strengthened oversight of the fuel and lubricants market to ensure uninterrupted supply and compliance with legal standards.

Agricultural producers, a key sector reliant on affordable fuel, will retain access to subsidized pricing under transparent mechanisms. Additionally, the government has pledged to implement social support measures to protect low-income and vulnerable populations from the financial impact of rising fuel prices.

“Liberalization will ensure predictability of changes and create conditions for modernization of the industry. Social support will be prioritized, and agricultural producers will continue to benefit from structured access to fuel,” the Ministry emphasized.

Kazakhstan’s plan to phase out state regulation of fuel prices marks a significant shift in the country’s energy policy. By transitioning to market pricing, the government aims to address long-standing challenges, including illegal exports and underinvestment in refinery modernization, while also ensuring social protections for vulnerable groups. The success of this reform will depend on how effectively the government balances economic modernization with public concerns over rising fuel costs.

Kazakhstan is grappling with a growing plastic pollution problem, as highlighted in a recent study conducted by the Ministry of Ecology and Natural Resources. The research, covering the period from 2013 to 2022, provides critical insights into the increase in plastic consumption, the resulting waste, and the systemic challenges that hinder effective waste management. The findings were part of the regional project “Plastic Waste in Remote and Mountainous Areas of Kazakhstan and Uzbekistan,” implemented by the CSD Center (Cooperation for Sustainable Development of the Republic of Kazakhstan).

Rapid Growth in Plastic Consumption

The study revealed a significant rise in the volume of plastic products entering the Kazakh market over the past decade, increasing from 387,000 tons in 2013 to 855,000 tons in 2022. Key industries driving this growth include:

• Packaging: Representing over 23% of total plastic consumption, with 196,000 tons used in 2022 alone.
• Construction: Accounting for 19% (167,000 tons), where plastic is used in durable materials such as pipes and insulation.
• Transport: Consuming 17% of all plastic due to the increased production of vehicles and the use of lightweight plastic components.

Escalation in Plastic Waste

The growing use of plastic has led to a corresponding rise in waste. In 2022, plastic waste generation reached 296,000 tons, more than double the amount recorded in 2013. Packaging remains the largest source of waste, comprising 66% of the total, largely due to the prevalence of disposable plastic bags and other single-use packaging materials.

By contrast, the construction and transport sectors generated relatively less waste, as the plastic used in these industries typically has a longer lifespan.

The study also identified the primary types of plastic waste in Kazakhstan:

• Polyethylene: 38%
• Polypropylene: 23%
• Polyethylene terephthalate (PET): 14%

Challenges in Plastic Waste Management

The research outlined several obstacles that hinder effective management of plastic waste in Kazakhstan:

• Insufficient Infrastructure: Existing waste management facilities are unable to handle the growing volumes of plastic waste.
• Lack of Separate Collection Systems: The absence of infrastructure for sorting waste at the source limits recycling efforts.
• Low Environmental Awareness: A significant portion of the population remains unaware of the importance of waste sorting and recycling.

Recommendations for a Circular Economy

To address these issues, the study suggests improving legislation to limit the use of single-use plastic items and promote the adoption of recycled materials. These measures could create favorable conditions for Kazakhstan’s transition to a circular economy, where resources are reused and recycled rather than discarded.

Additionally, the research emphasizes the need to develop infrastructure for waste sorting and recycling while raising public awareness about the environmental impact of plastic pollution.

Regional Context

Kazakhstan’s findings are part of broader efforts across Central Asia to combat plastic pollution. Countries in the region, including Kazakhstan, are exploring initiatives such as phasing out plastic bags to address the growing environmental challenge. For an overview of these regional efforts, see The Times of Central Asia’s reporton plastic bag bans.

Conclusion

Kazakhstan’s plastic waste study highlights the urgent need for systemic change in managing plastic consumption and waste. While the rise in plastic use reflects economic growth in key industries, the lack of effective recycling systems poses a significant environmental challenge. With the right legislative reforms and public awareness campaigns, Kazakhstan can take meaningful steps toward reducing plastic pollution and transitioning to a sustainable circular economy.