Kyrgyzstan expects fuel prices reduction in February due to the new railway tariffs

Almaty. January 30. Silkroadnews – Kyrgyzstan’s Prime Minister Sooronbay Jeenbekov held a working meeting on the situation on fuel and lubricants market, KyrTAG writes.

“According to calculations, the cost reduction in transportation of petroleum products from Russia to Kyrgyzstan amounted to 45-48 US dollars per tonne, depending on the distance from the borders of the refineries”, Nikolay Chuikov, head of the department of economy and investment under the government office under the Kyrgyz republic, said.

He noted, due to unified railway tariffs use it is expected that February will bring reduction in the cost for fuel and lubricants somewhere at 2-2.5 som per liter along with new batches of petroleum products delivered.

The official also said about steady wholesale prices increase observed at the Russian market of petroleum products for the last three months, which affected the growth of prices in the local market as well.

As a result, from October 2016 to January 2017 the cost of bulk petroleum products grew within 10-18% range depending on the brand fuel, while retail prices at the domestic market grew by an average of 11%.

Taking into account risks of petroleum products deficit in the Russian market, as well as suspension of shipments of products for the Christmas holidays, Kyrgyzstan’s oil traders have formed a two-month supply of petroleum products by the beginning of 2017.

In this regard, the January fuel supply volume is expected to be minimal, as well as its wholesale value’s impact on the retail prices. Thus, the forecasts say, throughout January prices for petroleum products in Kyrgyzstan are expected to remain unchanged at the end of 2016 level.