After signing of an agreement on duty-free supply of gasoline and organization of supplies themselves, one should not expect equalization of prices for fuel and lubricants in Kyrgyzstan with their level in Kazakhstan. The Association of Oil Traders of Kyrgyzstan reported.
According to their data, there has been an excess of gasoline production over its consumption level since the second half of 2018 in Kazakhstan. This is due to the completion of modernization of Kazakhstani refineries and a significant increase in the production of petroleum products. Therefore, oil traders are interested in import of fuel and lubricants from Kazakhstan. However, the import is hampered by the absence of an appropriate duty-free agreement.
In the absence of a permit for official exports, as well as overloading of oil depots in Kazakhstan, excess fuel is transported to the territory of Kyrgyzstan in a hidden form without official control and payment of taxes.
«At the same time, lower prices in Kazakhstan are caused by a number of internal factors that will not apply to export deliveries. Kazakhstan has a low level of taxation of the industry: the excise tax on gasoline is 5 times lower, on diesel — 3 times lower than in Kyrgyzstan. In addition, Kazakhstan has its own raw material base and own processing facilities in the form of three refineries. The government of Kazakhstan has the authority to regulate prices for fuel and lubricants,» the association stressed.
