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Kazakhstan to Crack Down on Motor Fuel Smuggling to Kyrgyzstan

On October 8, Kazakhstan’s Financial Monitoring Agency held a meeting on strengthening control over the smuggling of motor fuel from the country’s border regions. As gasoline prices in Kazakhstan are significantly lower than in neighboring Kyrgyzstan, gasoline is transported from the southern regions of Kazakhstan to northern Kyrgyzstan in passenger car gas tanks. In practical terms, drivers fill up their cars at Kazakh gas stations close to the border, then enter Kyrgyzstan and redistribute the gasoline. According to the Financial Monitoring Agency, up to 10,000 tons of fuel are exported this way monthly through the Kazakh-Kyrgyz border. Fuel is also illegally exported by railway tanks, with documents indicating other contents inside the tanks. At the meeting, the Kazakh government and law-enforcement agencies developed an algorithm of action to prevent the illegal export of motor fuel. Since the beginning of this year, Kazakh law enforcers have filed 21 criminal cases concerning the illegal export of almost 3,500 tons of fuel. Kazakh gasoline is sold in plastic bottles on northern Kyrgyzstan's roadsides and around Bishkek. The most popular gasoline, AI-92, is sold by roadside traders for 58 KGS per liter ($1 = 85 KGS), while authorized gas stations sell it for 67 KGS per liter. In 2023, Kyrgyzstan’s Tax Service confiscated 9,599 liters of illegal fuel, up from 3,422 liters in 2022.

Turkmenistan Among Ten Countries With Cheapest Gasoline

According to the Global Petrol Prices portal, the average price of gasoline worldwide is $1.21 per liter as of September 30, 2024. “However, there is a 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,” the report explains. Iran, Libya, and Venezuela have the lowest diesel fuel prices. Singapore, Israel, Finland, Albania, Switzerland, Liechtenstein, Iceland, the Central African Republic, Monaco, and Hong Kong have the highest prices. The highest price is noted in Hong Kong, where one liter of gasoline is $3,279. Turkmenistan has the lowest oil prices among Central Asian countries. One liter of gasoline costs $0.429, making it among the top 10 countries in terms of low prices. In Kazakhstan, the price of one liter of gasoline is $0.508. In Kyrgyzstan, it is slightly higher—$0.880. The most expensive price in the region is in Uzbekistan, where the price of one liter of gasoline is $0.983. There is no information about the price of gasoline in Tajikistan.

Price of Gasoline Set to Rise in Kyrgyzstan

The Ministry of Transport and Communications of Kyrgyzstan has presented a bill, approved by parliament, introducing  new mark-ups on fuel and lubricants. Legislative changes to impose additional charges on each liter of gasoline sold at gas stations, are intended to accrue extra funds from motorists for road maintenance. In addition, a recycling fee will be introduced for processing automobile tires, alongside a fee for waste oil disposal, to be accumulated in a new Road Fund under the Finance Ministry. Other regulations introduced by the Cabinet of Ministers include the necessity for all gas stations to use unique markers for gasoline and diesel ; a move which the State Tax Service believes will ensure fuel production transparency and import accounting. The cost of such labeling is yet to be determined, and as stated by Kanat Eshatov, president of the Association of Oil Traders of Kyrgyzstan, “We don't know how much gasoline prices may go up. It will all depend on the size of these fees. Initially, they said that gasoline labeling, in general, would be free. Then, they said that it would be at the expense of oil traders. Today, we do not know the price of the marker, whether it will be stable or change, and whether it will be subject to stock exchange jumps or stability. The price of gasoline and its stability will depend on this." The cost of gasoline has been rising throughout the year, largely as a result of a general increase in prices and repairs at refineries in Russia, from which Kyrgyzstan receives a significant amount of fuel. Meanwhile, the State Antimonopoly Service of Kyrgyzstan reports that the situation in the market of fuels and lubricants in the country remains stable. Supplies of oil products to Kyrgyzstan are carried out without interruptions, and fuel reserves in the country are designed for 1.5-2 months.

Turkmenistan in World’s Top Ten for Cheap Gasoline

According to The Global Petrol Prices portal, the cheapest gasoline price in the world is $0.029 per liter in Iran. In addition, low prices were observed in Libya ($0.032), Venezuela ($0.035), Egypt ($0.309), Algeria, Kuwait ($0.344), Malaysia ($0.471) and Nigeria ($0.485). According to the portal, the price of one liter of gasoline, Octane-95, in Turkmenistan is $0.0429. It ranks 8th in the list of most affordable gasoline prices. The highest gasoline prices are recorded in countries such as Israel, Barbados, Singapore, Denmark, Switzerland, the Netherlands, Liechtenstein, Iceland, Monaco, and Hong Kong. The highest price is observed in Hong Kong—$3.269 per liter. Kazakhstan has the next lowest price among Central Asian countries. The country is placed 11th in the ranking for the cheapest gasoline prices. In Kazakhstan, one liter of Octane-95 gasoline costs $0.507. The price of gasoline in Kyrgyzstan, which is 30th on the list, was $0.874 per liter at the beginning of September 2024. The price of a liter of gasoline in Uzbekistan during this period was $0.986, ranking 42nd. Fuel markets in these Central Asian countries are regulated, and prices stay mostly the same. The table does not include information about the cost of gasoline in Tajikistan. The Global Petrol Prices portal has been tracking retail energy prices since 2012, including fuel prices, electricity, and natural gas prices in more than 150 countries. Neven Valev, Ph.D., an economist with extensive scientific experience, leads the team of economists.