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Fuel and lubricants for agricultural producers

The provision and the price of fuels and lubricants during the field works are one of the most important issues for the agricultural producers.

Bolat AKCHULAKOV, the Vice Minister of Energy of the Republic of Kazakhstan; Rustem Kabzhanov, the Executive Director for Oil and Gas and Energy Development of the KAZENERGY Association; Kuandyk KULMURZIN, the Director General of KazMunayGas Onimderi LLP; Askhat KALIAKPAROV, the Deputy Director General of Petroleum Operating LLP; Nurzhan SARTBAYEV, the First Deputy Director General of Petrosun LLP told about the volumes of diesel fuel supplied for the agricultural producers this year, how the cost of fuel is added, whether the system of state regulation of prices for diesel fuel during sowing and harvesting campaigns in Kazakhstan on the site of the SCC RK.

Thus, Bolat Akchulakov has said: “This year, 375 thousand tons of diesel fuel was allotted for agricultural producers on request, which was completely covered by our side in spring works. For autumn deliveries, the amount of 394,400 tons was declared, which was also painted on the basis of months, beginning in July”. The Vice Minister emphasized the absence in Kazakhstan of the state regulation system of prices for petroleum products, including diesel fuel. At the same time, despite the market nature of pricing, manufacturing company show social responsibility and the volumes of fuel requested by agricultural producers are supplied to the market at a cheaper price. “This is purely the will of business representatives”, - Akchulakov explained. According to the data provided by him, Kazakhstan will produce about 4.5 million tons of diesel fuel in September (almost 90% of the total consumption level). Rustem Kabzhanov, the Executive Director of KAZENERGY, addressing the attendees, noted that despite significant fluctuations in prices on the crude oil market, oil companies have fulfilled their obligations to Kazakhstan consumers, often covering expenses at their own expense. Although the entire process of producing fuel from extraction, processing and supply is very expensive, shipment went on in a timely manner and diesel prices were always below market prices, which certainly can have a significant impact on the economy of oil companies.

The representatives of the largest resource-holders of oil products of the company: KazMunayGas Onimderi, Petroleum Operating and Petrosun told the audience about the schedule of diesel fuel shipment and prices for it. They stressed that the average cost of diesel is about KZT 161-167 per liter, which is much lower than retail prices. In addition, you can see that diesel prices in neighboring Russia are higher, and this affects pricing of fuels and lubricants in Kazakhstan. At the same time, the final prices for diesel fuel for the agricultural producers depend on the price policy of the operator companies – the winners of the tenders for the sale of fuels and lubricants, which are carried out by the regional executive bodies. Thus, the issue of the final cost of diesel fuel lies outside the field of influence of wholesale аfuel and lubricants suppliers.

Astana, SCC RK
August 7, 2018

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