RV-Oil&Gas Shares Its Anticipations Over Free Fuel Pricing In Kazakhstan

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 25. Free pricing of fuel in Kazakhstan is expected to help reduce the illegal outflow of fuels and lubricants from the country, stabilize supply markets, and reduce shortages, Rassul Abdukhalilov, CEO of the Kazakh company RV-Oil&Gas, said at the“Caspian and Central Asia - Refining, Petrochemicals, Trade and Logistics” event in Baku, Trend reports.

"This will also create an additional incentive for the development of exchange trading and the expansion of the network of petrol stations in remote regions. Regarding the impact on the regional market, deregulation is expected to lead to a gradual price alignment with neighboring countries," he also said.

In his analysis, this will catalyze an increase in market arbitrage opportunities within transboundary zones.

Proximal territories adjacent to Russian hydrocarbon processing facilities will perceive them as pivotal suppliers, and conversely, those facilities will regard these regions as integral consumers.

"Consequently, we can anticipate a reallocation of resource streams based on a substitution framework: for instance, hydrocarbons and lubricants originating from Russia will be directed towards northern Kazakhstan, whereas petroleum products from Kazakhstan will be channeled to Central Asian markets." This initiative will optimize supply chain expenditures and, as a result, lower both wholesale and retail pricing structures across Central Asia," Abdukhalilov elucidated.

He observed that Kazakhstan executed a deregulation of the pricing mechanisms for gasoline and diesel in February of the current fiscal year.

This represents a pivotal milestone in the trajectory of systemic market transformations for the nation.

Concurrently, the pricing dynamics of fuel in Kazakhstan exhibit a comparative advantage, positioning it as the most economical in relation to adjacent nations. This scenario engenders a myriad of challenges, notably the illicit transference of fuel across borders.

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