Difference in oil products prices in Russia and Kazakhstan may cause their shortage in Kazakhstan – Mynbayev
February 2. Interfax-Kazakhstan. Astana
According to Kazakh Oil and Gas Minister Sauat Mynbayev, the difference between Russian and Kazakh prices for oil products may lead to their shortage in Kazakhstan.
This year Kazakhstan will have to keep the oil products prices within a reasonable range as compared with the Russian prices, he told a Thursday meeting in the ministry.
“Currently the prices are regulated by the Ministry of Economy and the State Agency for Regulation of Natural Monopolies and approved by the Oil Ministry. Again, the level of our oil products prices should be reasonable compared with those in the other states of the Common Economic Space. Otherwise we will face their shortage,” he said.
The minister reminded that in July 2011 the difference between the Russian and Kazakh prices for oil products ranged between 20% and 49%.
“Before the law was adopted (“On State Regulation of the Production and Sales of Oil Products – If-K) we had had no legal mechanism to control the prices. Now the new law provides for a number of legal instruments for us to regulate the prices, including setting quotas for the domestic market and ceiling prices, limiting the number of intermediaries. We need to apply these instruments wisely, otherwise we will run in a shortage of oil products or will have to subsidize the difference in prices,” Mr Mynbayev said.
He also said that crude supply to mini-refineries needed to be controlled, especially imported crude oil.
“We need to develop a legal framework for tolling operation before 2015, when the reconstruction of all three refineries is completed,” the minister said.