Kazakhstan bans exports of petrol and diesel

analysis

Kazakhstan bans exports of petrol and diesel

By SRI ⋅ June 10, 2008 ⋅

As of June 1, Kazakhstan imposed a ban on exports of gas and diesel fuel. However, despite of the government’s efforts, prices at the gas stations continue to grow.

In this connection, Kazakh Prime Minister Karim Masimov has ordered expediting the purchase by the government of the control stock of Mangistaumunaigas (MMG).

Intervention is a means to fight inflation. “I had given instructions regarding the purchase of the Mangistaumunaigas stock before, but their fulfilment was unreasonably delayed. Once again I set the task to expeditiously buy, for the state’s ownership, at least 51 percent of the company’s stock,” the premier said to the leaders of the Ministry of Energy and of state holding company Samruk and national company KazMunaiGas (KMG).

The desire to spur the deal is quite understandable, as it is through this deal that the government plans to enhance its role in both oil production and oil processing. At the end of the last year, Masimov announced that one of the main tasks of the government and the National Bank in 2008 would be to fight inflation. He emphasised at that time that to achieve the necessary results, he did not rule out an “intervention” of KazMunaiGas in the most sensitive sectors of the economy. In this case, he meant KMG’s increased role in the internal market of oil products, to provide the government with the levers to keep the fuel prices in check.

By Kulpash Konyrova (New Europe)