Fuel prices have risen sharply in Tajikistan over the first five months though petroleum products have been delivered to the country almost at the same prices.
According to the statistical data from the Customs Service under the Government of Tajikistan, Tajikistan over the reporting period has imported nearly 113 million US dollars’ worth of about 209,000 tons of petroleum products, which was 8.8 percent less in volume and 6.8 percent less in price compared to the same period last year.
That is, the cost of one ton of petroleum products has increased on average from US$528.00 last year to US$540.00 this year.
Although the wholesale price has hardly changed, prices for the petroleum products have risen sharply in the country over the past two weeks.
Over the first five months of this year, prices or gasoline have risen one average by 41.4 percent, diesel fuel – 16.2 percent, and the liquefied natural gas (LNG) – 13.7 percent, according to the Agency for Statistics under the Government of Tajikistan.
Petroleum product suppliers say the main reason for the increase in gas prices across the country is devaluation of the national currency, the somoni.
Over the past year, the somoni has lost 16.6 percent of its value against the dollar (an official exchange rate).
Petroleum product suppliers buy fuel abroad for foreign currency while sale it in Tajikistan for the somoni.
Since 2013, more than 90 percent of all petroleum products have been imported into Tajikistan from Russia on concessional terms.
In accordance with amendments made to the government-to-government agreement between Tajikistan and Russia on petroleum product deliveries to Tajikistan, Tajikistan should provide its proposals on formation of the indicative fuel balances to Russia every year until September 5
Relevant bodies of the two countries should coordinate Tajikistan's internal fuel consumption volumes for the next year and sign indicative balances until October 1.
Besides, Tajikistan should provide information on implementation of indicative balances for nine months and the expected implementation of them during the current calendar year to Russia every year until November 15.
The sides can change the volumes of provided duty-free petroleum products for the current year until August 20 taking into account the reasonable change of internal consumption in Tajikistan.
Recall, Tajikistan was exempted from paying Russian tariffs on oil and gas exports from 1995-2010 and Russia cancelled Tajikistan’s tax exemption on May 1, 2010 that resulted in gasoline prices rising in the country.
The agreement on duty-free Russian oil product deliveries to Tajikistan was signed between the governments of Russia and Tajikistan in Moscow on February 6, 2013
Under this agreement, the sides consider and endorse the indicative fuel balance for the next calendar before October 1 of each year. Fuels delivered in addition to the indicative fuel balance will be liable to export duty.
Russian petroleum products delivered to Tajikistan in the volumes not exceeding those agreed on indicative balance are not subject to re-export to the third countries.
In particular, Tajikistan can receive 260,000 tons of gasoline, 310,000 tons of diesel fuel, 40,000 tons of jet fuel, 30,000 tons of fuel oil, 40,000 tons of bitumen, 100,000 tons of petroleum coke and 50,000 tons of liquefied natural gas (LNG) duty-free.
Tajikistan annually requests 830,000 tons of petroleum products, but actual fuel imports, according to the official statistics, do not reach even 600,000 tons.
