Fuel prices increased yet again.
Hear ye, hear ye! Here's the lowdown on the rise in gasoline prices across all brands in good ol' Kazakhstan.
During the pandemic year, gas and other petroleum product sales took a 2% dip, according to Ranking. Yet, surprisingly, the volume of these sales at gas stations, autogas refueling stations, and compressed natural gas stations amounted to a mind-boggling 1.1 trillion tenge in 2020—just 1.5% less than in 2019.
The number of gas stations also grew by 3.7%, reaching a whopping 6,272 stations, with automobile refueling stations taking the lion's share (3,913). Autogas refueling stations and compressed natural gas stations accounted for 2,343 and 16 stations, respectively.
Approximately two-thirds of the retail trade volume in petroleum products at these stations was gasoline—a hefty 704.1 billion tenge, or an impressive 3.9 million tons. Diesel fuel followed suit with 347.5 billion tenge, or 1.7 million tons. Liquefied petroleum gas accounted for 72.9 billion tenge, or 799.9 thousand tons, and compressed natural gas for 55.5 million tenge, or 891 thousand cubic meters.
The regions with the highest retail trade volumes in petroleum products were Almaty region, Almaty city, and Karaganda region, each racking up billions in sales. On the other hand, the regions with the highest number of stations were Turkestan, Karaganda, and East Kazakhstan.
The most popular gasoline, AI-92, accounted for 579.6 billion tenge, or 3.3 million tons, while AI-95 followed with 115.7 billion tenge, or 595.5 thousand tons. AI-96 and AI-98 accounted for a comparatively smaller 2.6 and 6.2 billion tenge, respectively.
And now for the bad news: gasoline prices have seen a significant hike. For instance, AI-92, the most popular choice, raised its price to 171.3 tenge per liter—that's nearly a 12.8% increase since last year! AI-95/96 followed suit, increasing to 192.1 tenge per liter, while AI-95 saw a slightly smaller 9.5% price rise.
Now, a watchdog group called AZRK of Kazakhstan has accused major fuel stations of participating in a price-fixing scheme, setting unreasonable prices for the beloved AI-92 gasoline. This investigation could lead to fines for these stations if found guilty.
By the way, here are some factors that are affecting the rise in gas prices:
- Global Oil Market Dynamics: Fluctuations in global oil prices can impact fuel costs locally. Recently, we've seen drops in global oil prices, but these drops can be short-lived.
- Domestic Economic Policies: Increased domestic utility tariffs and a proposed VAT hike could lead to higher inflation—indirectly affecting fuel prices.
- Supply Chain Challenges: Kazakhstan relies on the Caspian Pipeline Consortium for oil exports, but there are challenges like drone attacks and Russian bottlenecks that can affect supply stability and costs.
- Fiscal Policies: The government needs oil prices to remain above a certain level to maintain fiscal stability. Economic policies influenced by oil revenues could indirectly impact fuel pricing.
Stay tuned for more updates on this developing story!
- In the Kazakhstan petroleum industry, nearly 891 million tenge was traded in compressed natural gas (CNG) in 2020, a figure that underscores the growing importance of alternative fuels in the retail market.
- The energy sector's finance landscape in Kazakhstan saw an unexpected surge in 2020, with petroleum product sales amounting to nearly 1.1 trillion tenge despite the pandemic-induced dip.
- The retail industry in Kazakhstan saw a significant volume of petroleum product sales, with gasoline accounting for nearly 3.9 million tons in 2020.
- Despite the rise in gasoline prices across Kazakhstan, the retail trade volume in petroleum products in the regions of Almaty, Almaty city, and Karaganda remained surprisingly high, indicating a resilient demand for these products.
