The Ministry of Energy of Kazakhstan plans to adjust the price of liquefied petroleum gas in the country from July 1. A third of Tajikistan’s liquefied gas imports come from Kazakhstan. The department considered that the price of liquefied gas is much lower than the cost of its production.
Thus, the cost of production varies from 60 thousand to 70 thousand tenge ($133.36 – $155.59 at today’s exchange rate) per ton. While the current maximum wholesale price for manufacturing plants is 40,320 tenge ($89.62) per ton.
Thus, for each ton of gas produced, plants incur losses of 20-30 thousand tenge ($44.45 – 66.68), the department notes.
Another reason for the revision of prices for liquefied petroleum gas is considered to be the increase in consumption and the unprofitability of its production due to low prices, which led to a decrease in the production of this type of fuel and a certain shortage in the regions. Today, the level of shortage of this type of gas in Kazakhstan reaches about 20-25%.
In the event of further containment of prices for liquefied petroleum gas, Kazakh manufacturing plants will not be able to increase production volumes to meet demand in the domestic market. Accordingly, due to unprofitability, factories are increasingly losing interest in its production, switching to more profitable products. Due to similar reasons, investors are also reluctant to invest in the industry.
The Ministry of Energy of Kazakhstan believes that the country has one of the lowest prices for liquefied petroleum gas – from 54 to 86 tenge ($0.12).
In order to prevent these risks, from July 1, 2024, it is planned to adjust prices for liquefied petroleum gas. Thus, the maximum wholesale price per ton of liquefied petroleum gas will be 45,158 tenge ($98.15 instead of $89.62 previously). At the same time, the maximum retail price will increase slightly – from 5 to 8 tenge per liter, depending on the region.
The draft order is at the stage of public discussion.
How will this affect Tajikistan?
Tajikistan last year imported more than 411 thousand tons of gas, of which 76% came from Kazakhstan, about 20% from Russia and about 4% from Uzbekistan. Currently, there is a restriction on the export of liquefied petroleum gas in Kazakhstan.
However, the decision to ban exports does not apply to companies supplying liquefied gas to Tajikistan on the basis of interstate agreements.
Meanwhile, in Tajikistan itself, the price of liquefied gas decreased by 20 dirams. Today the cost of this type of fuel in Khujand is 5.90-6.00 somoni, in Dushanbe 6.10-6.20 somoni. A week earlier, prices were 6.0-6.40, respectively.
