State regulation of oil prices proposed to be introduced in Kazakhstan

Demonopolization of the oil products market, state regulation of oil prices and volumes of its supplies to the domestic market in Kazakhstan. Such control will ensure the stability of fuel prices and the transparency of pricing in the country's market. Rustam Akhmetov, First Deputy Chairman of the Agency for the Protection and Development of Competition, made such a proposal during a briefing. According to him, the two main domestic oil groups should work in a competitive environment, and the intermediary link represented by the wholesale supplier of ‘black gold’ should be eliminated. The speaker noted that, at the same time, the latter should be provided for by the law. In addition, the anti-monopoly agency proposes that independent companies sell oil only on the stock exchange. At the first stage in the amount of 5-10 percent, with a further increase in exchange trading up to 30 percent.

“This is necessary for the development of small vertically integrated companies and independent suppliers. In our opinion, the two main groups should work in a competitive market. If we leave another intermediary link - the small and medium suppliers, then we propose to limit the participation of subsoil users directly in it. Thus, we remove from the market those who do not have the infrastructure for oil production, storage, processing and sale of petroleum products,” said Rustam Akhmetov, First Deputy Chair, Kazakh Agency for Protection and Development of Competition.

Translation and editing by Galiya Khassenkhanova