Fuel issue: Government takes measures and punishes people in charge

The issue of an uninterrupted supply of diesel fuel to all regions of the country is being addressed by a commission specially created by order of the Prime Minister of Kazakhstan and headed by First Deputy Prime Minister Roman Sklyar. It was composed of representatives of responsible state agencies and national companies.

The Commission identified the factors that influenced the shortage of important fuel for the country. Thus, one of the main reasons is a significant increase in fuel consumption, primarily by foreign transit transport. The second reason is the overflow of diesel fuel outside of Kazakhstan to neighboring countries due to a significant difference in price.

For example, the cost of diesel in Kazakhstan is 230-260 tenge per liter, while at gas stations in Uzbekistan, Kyrgyzstan and Russia the price goes up to 440 tenge.

There were recorded facts when domestic oil depots sold diesel fuel at a price higher than its retail value, which led to a reduction in sales of fuel in the regions, as its purchase became unprofitable for gas stations.

In addition, systemic omissions and shortcomings in production, marketing and logistics on the part of KazMunayGas, Petrosun, and refineries were identified.

A number of operational and long-term measures were taken to normalize the situation and fully supply the domestic fuel and lubricant market:

  • increase in the diesel fuel production volume to 5.2 million tons this year, which is 340 thousand tons more than in 2021;
  • increase in the fuel oil shipment volumes from oil refineries;
  • Samruk-Kazyna Fund and NC KazMunayGas JSC reached an agreement on supply of additional volumes of diesel fuel;
  • expansion of production capacities of the Shymkent Refinery is planned;
  • a phased transition to a new refinery operation scheme is planned for 2023, under which oil will be supplied to the refineries directly by subsoil users or through direct purchase by the refinery.

In addition, the Ministry of Energy and major gas station networks have opened call centers where Kazakhstanis can report facts of unreasonable overpricing and refusals to sell fuel and lubricants.

The Chairman of the Board of KazMunayGas Mirzagaliyev and Vice-Minister of Energy Magauov were severely reprimanded for failure to take timely measures. Also, disciplinary measures were taken and labor relations with a number of responsible employees of the Ministry of Energy and KMG were terminated.

This issue is under special control of the Government, stabilization of the situation is expected in early September.

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