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Fuel prices may sharply rise from January 1, 2019 in Kyrgyzstan

If the agreement on duty-free delivery of fuel and lubricants to Kyrgyzstan from Russia is not approved, the fuel may rise in price by 2-3 soms. Association of Oil Traders of Kyrgyzstan reported.

According to it, the indicative balance for the supply of fuel for the next year should be agreed and signed by the competent authorities of the parties before October 1. But the work on the indicative balance for 2019 is not completed.

«There are risks of stopping the duty-free supply of petroleum products from Russia from January 1, 2019. In this case, the supply of petroleum products to Kyrgyzstan will be subject to export duties (as of December 2018 — $ 40.5 per 1 ton), which will inevitably lead to an increase in retail prices for fuel and lubricants in the republic by 2.5-3 soms,» statement says.

At the beginning of September 2018, the Association of Oil Traders sent proposals to the balance sheet for 2019 with the following forecast indicators: gasoline — 485,000 tons, diesel fuel — 580,000 tons, jet fuel — 130,000 tons.

However, during the negotiations, the Russian side did not agree to increase the volumes of duty-free deliveries and offered to sign the balance for 2019 at the 2018 level: gasoline — 460,000 tons, diesel fuel — 485,000 tons, jet fuel — 100,000 tons, oil — 50,000 tons.

«For the uninterrupted provision of the republic with the necessary volumes of fuel and lubricants on a duty-free basis, the Association coordinated this proposal with the obligatory condition for making subsequent adjustments to the balance sheet during 2019, taking into account the actual rates of import and consumption of petroleum products. In addition, the need to speed up the signing of the balance was noted, as well as to agree with the Russian side on the inclusion of volumes of liquefied gas and bitumen in the indicative balance,» the Association noted.