Kazakh media reports say Kazakhstan plans to gradually raise liquefied gas prices beginning in the first quarter of the next year.
Tegrinews.kz, citing the Deputy Minister of Energy of Kazakhstan, Alibek Zhamauov, reported on November 20 that over the first quarter of 2024, the price for one liter of the liquefied petroleum gas will increase by 5.00 tenge (US$0.01
“And thus, subsequently for next three years the liquefied gas prices will rise every six months,” Zamauov said at a briefing on November 20.
He further noted that it is necessary to raise liquefied gas prices in order to ensure modernization of domestic gas processing plants and break-even of gas producing enterprises.
“Thereby we will reduce the level of gas shortage in the country,” Zhamauov said.
Recall, the Minister of Energy of Kazakhstan Amasadam Satkaliyev has warned the country’s citizens of an expected increase in liquefied gas prices to the level of production costs. The minister noted in early November that the country has seen a significant increase in use by motor vehicles of liquefied gas as fuel.
“Of course, there are prerequisites for increasing prices. I have already said that this is an investment that involved the modernization of basic equipment and the understanding that this type of auto fuel is now being sold to the domestic market at a loss below cost,” Satkaliyev was cited as saying.
In addition, liquefied petroleum gas (LPG) holds strategic importance as a raw material for large-scale petrochemical projects in Kazakhstan. This unique product is expected to generate employment opportunities within the country, emphasizing the need to meet growing demand, the minister noted.
He reportedly explained that measures are being taken to meet this demand, including the redirection of export volumes.
The minister noted that they are solving the issues of a sharp increase in demand by redirecting volumes from exports. According to him, Tengizchevroil is redirecting about 20,000 tons monthly to the domestic market.
The minister emphasized that current LPG prices in Kazakhstan range from 50 to 80 tenge ($0.11 to $0.17), significantly lower than the estimated production cost of 110 tenge (US$0.23 per liter).
Against the backcloth of rising liquefied gas and gasoline prices in Russia and Kazakhstan, which provide the bulk of Tajikistan’s fuel imports, there is an acute shortage of fuel at gas stations in Tajikistan.
In Dushanbe, the price for one liter of liquefied gas has risen to 8.00 somonis, with similar price rises in other parts of the country.
It is to be noted that more than 60 percent of motor vehicles in the country use liquefied natural gas as fuel.
Meanwhile, the price for one liter of 92-octane gasoline, which is the most sought-after grade of automobile gas in the country, rose in Dushanbe from 11.00 somonis on October 23 to 11.80 somonis on October 24.
Gas station owners say they sell a day's allowance of fuel in two or three hours and close until the next day.
Gas station employees say liquefied gas and gasoline wholesale prices are rising and they do not know what the price will be tomorrow.
As it had been reported earlier, in a move to stabilize domestic fuel prices, Russia, which accounts for 85.4 percent of Tajikistan’s fuel imports, announced a snap ban on diesel and gasoline exports on September 21, amplifying the strain on an already tight global fuel market.
Meanwhile, Kazakhstan, which provides the bulk of Tajikistan’s LNG imports (73.6 percent), has set a temporary ban on liquefied petroleum gas exports from the country.
The ban is reportedly introduced for exports of liquefied petroleum gas and butane from Kazakhstan by motor transport for the term of three years, by rail transport – for the term of six months, except liquefied petroleum gas export by subsoil users that produced it within the framework of a production sharing agreement (contract) or a subsoil use contract approved by the president of Kazakhstan.
Tajikistan has faced rising liquefied gas prices and is looking for alternative fuel supplies as Kazakhstan has decided to temporarily halt liquefied gas exports and Russia has released free prices for this type of fuel.
Further increase in LNG prices will lead to increase in the price of basic food products in Tajikistan.
