Kazakhstan can resolve fuel shortage problems
By Aynur Jafarova
Kazakhstan may resolve its problems with the periodic shortage of fuels and lubricants only by increasing the prices for fuel and transition to market conditions, Mariyam Zhumadil believes.
"Currently, we don't see another option besides increasing the
prices for the fuels and lubricants in the country," the senior
analyst at Halyk Finance told Trend Agency.
"The Kazakh government slightly increased the prices in August, but
it wasn't enough" she added. "Currently, the prices for fuel in the
exporting countries continue to exceed the regulated domestic
prices in Kazakhstan. Therefore, the purchase of the fuel from
other countries is no longer profitable for the importers."
The expert also mentioned the necessity of attracting
investments in the modernization of the country's refining sector
as another variant for resolving this problem.
Zhumadil said Kazakhstan's refineries operating from the Soviet
period do not fully meet the demands of the domestic market. The
production volume in these refineries is lower than in other
countries with more modern facilities. The reconstruction of these
refineries or construction of new ones could resolve the problem
with the shortage of fuels and lubricants in Kazakhstan.
"The reconstruction of the refineries and construction of new ones
will allow increasing the production of fuel and petroleum products
and reduce the prime cost of the products," the senior analyst
said.
Zhumadil also added nevertheless, reconstruction and construction
of refineries also requires higher prices for fuels and lubricants,
as under the current conditions of price regulation, it is
unprofitable for investors and plant owners to invest in their
modernization.
Kazakhstan has some oil refineries, which are located in
Shymkent (country's southern part), Atyrau (western part) and
Pavlodar (northern part).
Earlier Kazakhstan's First Deputy Energy Minister Uzakbai Karabalin
said his country is in talks with Azerbaijan, as well as Russia and
Turkmenistan to purchase fuels and lubricants.