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Turkmenistan’s Unexplained Shortage of Gasoline

For months now, areas in eastern Turkmenistan have been facing a severe gasoline shortage. The lack of fuel at the pumps is having a knock-on effect that is raising food prices and shutting down public transportation. Turkmen officials have not acknowledged there is any problem, so the people of the affected regions have no idea why this happening or for how long this situation will continue. Gasoline shortages are not new to Turkmenistan. They have been occurring sporadically in recent years, usually during in late summer when harvesting of crops starts. This latest deficit is unprecedented for Turkmenistan in its duration and severity.       Long lines and purchase limits By late June, there reports from Lebap and Mary provinces about lines of cars of waiting at petrol stations. Often there was not enough gasoline for everyone. By mid-July, filling stations in at least five districts and several of the big cities in Lebap Province were often completely out of higher-grade gasoline – A92 and A95. Before the end of July, Lebap authorities imposed a 10-liter limit per customer, per day on gasoline purchases. At the start of July there were areas in the northeastern Dashoguz Province that were totally without gasoline, even the cheapest and most environmentally harmful A-80 grade (which is banned in many countries, including Kyrgyzstan and Tajikistan) was unavailable. In Mary Province, A-92 and A-95 gasoline ran out in July and by early August authorities had limited purchases of A-80 to 20 liters per customer, and even that was unavailable in many areas of the province. In October, Radio Free Europe’s Turkmen service, known locally as Azatlyk, posted a video of a line of vehicles some three kilometers long outside one of the few filling stations operating along the Turkmenabad-Mary highway. Azatlyk’s sources in the region said there were similar lines at filling stations throughout the province and in the provincial capital Turkmenabad. Some people are reportedly arriving at filling stations at 4am to get a place in line as close to the pumps as possible when the stations open. In Mary Province, some car owners said they were phoning family members to bring them food and water while they waited in line.   Prices going up at the pumps and other areas Turkmenistan has some of the least expensive gasoline in the world with an average of $0.428 per liter, roughly a third of the world average of $1.30 per liter. The official rate of Turkmenistan’s national currency, the manat, is 3.5 to $1. The state regulated cost of one liter of gasoline is 1.15 manat for A-80, 1.35 for A-92, 1.5 for A-95, and 1 manat for diesel. There have been incidents where filling station employees have been illegally selling gasoline at 5-6 manat per liter to those who can afford it. The shortage is having an effect on public transportation. Most buses are assigned to bringing people to and from the cotton fields once harvest starts toward the end of August or...

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.

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.

Kyrgyzstan to Modernize Oil Refinery in Jalal-Abad

On September 28, Kyrgyzstan's largest oil refinery, located in the southern city of Jalal-Abad, began a large-scale modernization. Operated by Kyrgyz Petroleum Company, the refinery produces AI-80 gasoline, diesel fuel, and fuel oil. Kyrgyzstan's annual gasoline and diesel fuel demand is 1.4 million tons. The refinery in Jalal-Abad can meet only 6.5% of that demand. After the modernization project, the refinery will be able to meet 32% of the domestic demand. After modernization, AI-92 and AI-95 gasoline production would increase more than 12-fold, and diesel fuel production would grow by 40%. The total investment in modernizing the refinery will amount to $410 million, including $200 million in foreign investments and $110 million from the Kyrgyz government. Today, almost all gasoline and diesel fuel used by Kyrgyzstan is imported from Russia. The Times of Central Asia earlier reported that Kyrgyzstan proposed oil-rich Azerbaijan to sign a long-term contract to supply Azeri crude oil to Kyrgyzstan. Azeri crude oil is needed for Kyrgyzstan’s Junda oil refinery. Located in Kara-Balta, about 100 kilometers west of Bishkek, the refinery reopened late in August after a major overhaul. It now plans to reach its total annual capacity of processing 800,000 tons of crude oil by the end of this year.

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.