Gasoline gets cheaper since April 1 in Kazakhstan
Starting from April 1, 2020, retail prices for gasoline and diesel fuel in large networks of filling stations have decreased. Since the beginning of March, the decrease in wholesale prices for gasoline and diesel fuel on the domestic market has been about 10%.
The main reasons include the fall in world prices for oil and petroleum products and the approval by the Government of Kazakhstan of a package of measures to support business for the period of emergency.
Gasoline prices in Kazakhstan were also affected by exemption from excise duties for producers of excisable goods for gasoline and diesel fuel (until 31.12.2020) and introduction of a ban on railway supplies of gasoline and diesel fuel from Russia to Kazakhstan. As for export customs duties on oil products, zeroing is planned.
Currently, diesel fuel has fallen in price by an average of 7-8 tenge in all regions of the country, and prices for AI-92 gasoline are reaching the lower limit in the regions – KZT150-155 (based on price monitoring of the largest retailer of fuels and lubricants company PetroRetail, the network of filling stations in KazMunayGas).
According to Atameken experts, with a significant drop in quotations for oil and petroleum products in the world commodity markets, the economy of petroleum products exported from Kazakhstan is low-profit.
By the way, the current market situation also does not inspire optimism in the oil sector of Kazakhstan. Taking into account the cost of production of Kazakhstani oil, as well as the existing costs of transporting oil from the field to the markets and the current tax rates in Kazakhstan, the economic efficiency from oil sales is almost equal to 0.
Kazakhstan's subsoil users are under very serious pressure from the world market. In the short term, there is a high risk of negative value formation of Kazakhstan oil.
Canadian oil producers have already faced this problem. Under such conditions, oil producers will have to completely stop oil production. And this will lead to mass downtime of fields and reduction of jobs. More than 150 thousand Kazakhstani workers are involved in the oil industry of Kazakhstan.