Energy Minister: Low gasoline prices will result in limitedness

ASTANA. KAZINFORM Kazakh Minister of Energy Kanat Bozumbayev has stated that the main target of the ministry is to prevent a deficit and ensure saturation of the fuel and lubricants market, while the market determines prices, Kazinform correspondent reports.

"We all live in the market-oriented economy. As Kazakhstan borders five states, the price level at fuel stations in four of them, except for Turkmenistan, is much higher there. If we want low prices, we must understand that fuel will be limited in that case. It is a simple law of the market-based economy. I am not going to compare the fuel prices in European countries to the prices in Kazakhstan, because I understand perfectly well that the income level is also much different", the minister said today during a meeting with citizens.

However, the minister safely said that among other CIS countries the gasoline price in Kazakhstan is one of the lowest. "For the ministry's part, I emphasize that we will strive for pricing transparency and create economic conditions for oil supplies to the domestic market. In this respect, we are considering a range of instruments such as development of oil products exchange trading and future change of the taxation policy", Kanat Bozumbayev noted.

According to the ministry, the productivity of the three oil refinery plants has increased and equaled 107 percent (4.5 million tons) for January to April this year. As to homemade gasoline, diesel fuel and aviation kerosene, the domestic market sufficiency has amounted to 77.5pct, 98.9pct and 39pct respectively.