Azernews.Az

By Aynur Jafarova

Kazakhstan’s First Deputy Energy Minister Uzakbai Karabalin has rejected as baseless any reports on a possible increase of gasoline price up to 300 tenges (181.09 tenges = $1) per liter.

“Of course, there may be some increase in the price but not so much,” he noted on December 3.

The deputy minister also said today a number of companies supply oil to the plants, including KazMunaiGas, OzenMunaiGas, "MangistauMunaiGas, PetroKazakhstan and others. All they supplies necessary oil for processing.

“The exploration works are underway, fields are discovered, and the development of other fields is being conducted,” Karabalin said. “We think that in any case, the share of these fields in supplying oil refineries will be considerable.”

Earlier Kazakh Senator Lazzat Kiinov said the government should intensify works on search and exploration of new oil and gas fields to avoid a jump in oil prices.

He said major Western companies intend to deliver oil for domestic processing not at intrinsic prices, but at world prices.

If Kazakhstan gives oil to domestic oil refineries at world prices, then the price for AI-95 and AI-96 gasoline will amount to 350-370 tenges per liter.

In Kazakhstan, the government regulation applies to petrol AI -80 and diesel AI-92/93. The price of gasoline AI 95-96 and AI- 98 is not regulated. It is set in a competitive market.

According to the forecasts, the gasoline production in Kazakhstan in 2014 will amount to 2,885 million metric tons, while the consumption is expected to reach 4,168 million metric tons.

Kazakhstan is currently upgrading all of its oil refineries, which is scheduled for completion in 2016. After the upgrade, Kazakhstan's need for light petroleum products will be fully met.