08 August, 2018

Natural resource holders sell diesel for needs of agriculture at a price of 150 tenge from refinery — Ministry of Energy

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At the press conference August 7 the Vice Minister of Energy Bolat Akchulakov said that an increase in the price for diesel fuel at filling stations will not affect the work of Kazakh agrarians in conducting agricultural work.

According to the Ministry of Energy, the increase in the price for diesel fuel at the gas station is due to several factors.

Akchulakov informed that the main factor in increasing the consumption of diesel fuel is the direction of a significant amount from the total production of diesel for the provision of agricultural and railway industries. In addition, the increase in demand is associated with a seasonal increase in transit cargo transportation through Kazakhstan and related fuel flows due to disparity of prices in the domestic market and in the border regions of neighboring countries. According to him, the excise tax on diesel fuel has been increased since June 1, 2018, by 7.7 tg / l.

"In combination, an increase in demand and in the volume of preferential fuel for agricultural producers and the growth in the cost of production, along with an increased cost of production of diesel fuel (an increase in the refining rate for refineries) contributes to a seasonal increase in the level of prices for diesel fuel," Akchulakov said.

At the same time, the vice minister told about the significant discount provided by agricultural resource producers for agricultural producers.

"We especially note that there is no competence of the legislative approval of the cheapened prices for diesel fuel for the agricultural producers from the Ministry of Energy for agriculture. Shipment of diesel fuel from refineries for the producers is carried out on a priority basis. At the same time, monitoring and control of shipments are carried out on a daily basis. On the basis of the foregoing, we note that the Ministry of Energy takes comprehensive measures to support agricultural producers for stable and timely field work in 2018," the vice minister assured.

In addition, in order to ensure timely field work in 2018, the Ministry of Energy jointly with the Ministry of Agriculture developed the Schedules for fixing the regions for the refinery for the supply of diesel fuel for field work in 2018, within which the general application for agricultural producers was fully satisfied and approved in the amount of 769,400 tons. Thus, diesel is supplied to farmers in the spring for sowing and in autumn when harvesting. At the beginning of the year, 375,000 tons of diesel fuel were allocated for agricultural producers. For the autumn deliveries, 394,400 tons were declared.

According to the Ministry of Energy, the schedule of deliveries is scheduled from July to October.

With the supply plan for July 2018 in the volume of 112,200 tons, shipment is 90,200 tons or 80.4%. Shipment is carried out stably in accordance with the paid volumes. The cumulative stock of diesel fuel as of August 6, 2018, is 255,800 tons, including 193.1 at the oil depots of the republic. At the same time, stocks of Ai-92 gasoline amount to 347.9, including 299.7 at the oil depots of the republic.

"Today, this volume is distributed for regions. There is no state regulation of prices for diesel fuel. The price is added to the market. With regard to agricultural producers, there is no state subsidization of prices. Despite this, resource holders of petroleum products provided a significant discount for agricultural producers. So, at a retail price of diesel fuel of 183-187 tenge per 1 liter, resource holders release diesel for the needs of agriculture at a price of 150 tenge from refineries," Akchulakov emphasized.

As for the price of fuel, according to the rating of the International Agency Global Petroleum Prices (as of July 30, 2018), Kazakhstan ranks 10th among the countries with the cheapest gasoline, and diesel fuel — 13th among 167 countries.

"In countries such as Saudi Arabia, the United Arab Emirates, the United States, Russia, Azerbaijan, etc., gasilone is more expensive than in Kazakhstan. Gasoline costs cheaper only in nine countries (Venezuela, Iran, Kuwait) and diesel fuel is cheaper in 12 countries (Venezuela, Iran, Saudi Arabia). The rating is formed on a monthly basis. These data are open and anyone can be sure," added Akchulakov.

In conclusion, the vice minister of energy drew attention to the fact that the price for imported diesel fuel at the border Russia – Kazakhstan (excluding delivery and storage) is 238,461 tenge, which is more expensive by 58,461 tenge from the price level for agricultural producers and by 28,364 tenge more expensive than domestic market prices.

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