Azernews.Az

By Aynur Jafarova

Suspension of work at Russian refineries due to refurbishment will result in growth of gasoline prices in Kazakhstan, Kazakh Oil and Gas Minister Uzakbay Karabalin told journalists on September 26 on the sidelines of the Senate (the upper house of Kazakh Parliament).

"In October, we expect the scheduled a moth-long repairs of refineries, including the Omsk refinery and the Ufa plant. This is probable to lead to a temporary decline in oil products supplies from Russia. To some extent, it may influence prices in Kazakhstan," Karabalin said.

He recalled that Kazakhstan is constantly importing a certain amount of high-octane gasoline from Russia as the local plants "are not yet capable of ensuring domestic demand for these grades of gasoline".

The volume of imports from Russia annually reaches 800,000-900,000 tons of gasoline, he added.

"We have certain resources, accumulated gasoline and diesel fuel, but this may not be sufficient for our recently refurbished plants," he added. "Therefore, we expect a slight increase in prices."

However, Karabalin did not specify the size of price increases.

"For now I cannot say for sure, as it also depends on the consumer market and on the amount that we will be able to import finally, but prices may rise by 5-7 percent," he underscored.

Kazakhstan operates oil refineries, which are located in Shymkent (country's southern part), Atyrau (western part) and Pavlodar (northern part).

Karabalin said earlier that the construction of a new refinery is still under discussion.

"We will view the whole complex of enterprises which will emerge within the state program of forced industrial-innovative development. Logically, it is possible to place the refinery there," he said.

Expert of the Economics Institute under the Kazakh Education and Science Ministry Oleg Yegorov believes that Kazakhstan will need to construct a new modern refinery in the nearest future.

"The existing refineries are old, both morally and physically, and there are no any remarkable improvements in the country's refinery sphere," he said.