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Prices of fuel and lubricants to grow by 6 percent in July in Kyrgyzstan

Prices of fuel and lubricants could grow by 6 more percent in Kyrgyzstan in July. The Union of Oil Traders informed 24.kg news agency.

According to the Union, prices for many goods, including oil, are growing rapidly. The cost of oil futures supplies to date is more than $ 75 per barrel.

«Demand is growing, according to Bank of America analysis, the price of Brent oil may rise to $ 100 per barrel by 2022. Similar forecasts were presented by the largest global oil trader Trafigura and the American Goldman Sachs bank. The rise in oil prices is associated with an increase in demand and limited supply,» oil traders note.

According to market participants, prices for oil products are also growing in Kazakhstan. The planned shutdown for the repair of Pavlodar refinery from July 24 to August 16 directly affects the market. According to the assumptions of market experts, there may be a shortage of fuel during repairs at the refinery, which may lead to an increase in imports from Russia to the northern regions of the Republic of Kazakhstan. Traders said that some suppliers have limited fuel sales as they expect further price increases.

The cost of oil products has also increased in Uzbekistan. This is due to an increase in the selling price of petroleum products in the Russian Federation, the rise in price averaged from $ 25 to $ 30 per tonne.

«An average price for wholesale batches of AI 92 gasoline on the domestic market today is 54,000 rubles, and the export price of AI 92 has exceeded 67,000 rubles per tonne. Diesel fuel, against the background of growing demand and growth of quotations in Europe, is breaking historical records, having risen in price by 6 percent,» the Union of Oil Traders says.

According to their forecasts, the price of fuel and lubricants will grow from 4 to 6 percent in July.

«Kyrgyzstan is import-dependent in many areas, including in oil products supply. It should be borne in mind that we cannot influence the manufacturer’s selling prices, so we have to use other measures to influence the country’s market, for example, to lower taxes on petroleum products during periods of peak consumption, use incentives for import of vehicles with hybrid and electric motors, simplify building codes for gas stations,» oil traders offer.

According to them, this will allow to quickly develop the NGV market and strengthen the national currency.