Measures taken by the Ministry of Energy during the emergency

Measures aimed at eliminating the overstocking of the Kazakhstani market with oil products in the period of lack of demand on the domestic market, creating economically attractive conditions for the export of oil products of Kazakhstan production, as well as protecting domestic oil refining and production of oil products during the emergency regime:

1. Cancellation of the ban for the export of petroleum products by road transport outside of the Republic of Kazakhstan (effective from April 10, 2020);

2. Cancellation of the ban for the export of petroleum products outside the customs union states (effective from April 6, 2020);

3. Exemption from payment of the excises for producers of excisable goods for gasoline and diesel fuel sold for export (valid from March 27 to December 31);

4. Introduction of a ban for rail deliveries of gasoline, diesel and aviation fuel from Russia to Kazakhstan (valid from March 30 to July 1);

5. Zero rates of export customs duties to petroleum products, including to gasoline, diesel fuel and fuel oil (valid from April 1 to January 1, 2021);

6. The decree of the government of the Republic of Kazakhstan approved the Rules (methodology) of pricing for goods produced from oil, which establish the procedure for calculating pricing for goods produced from oil (gasoline, aviation and diesel fuel, fuel oil, vacuum gas oil) (valid from March 15 to June 30, 2020 inclusively).

386.5 thousand tons of diesel fuel were allocated at a reduced price for spring field works:

In the framework of execution of orders of the head of state of ME RK 386,5 thousand tons of diesel fuel was allocated for spring field work at a reduced price 165 tenge per liter. This measure is aimed at stable implementation of spring field work.

Limit prices for liquefied gas for motorists have been set:

The Ministry of Energy together with regional akimats analyzed the minimum and maximum prices at all 2165 gas stations. As a result of this analysis by a joint order of the Ministry of Energy dated 03.04.2020 No. 125 and the Ministry of National Economy dated 03.04.2020 No. 22, the maximum prices for retail sale of liquefied petroleum gas for refueling vehicles at gas stations were established. In general, average prices for liquefied petroleum gas in Kazakhstan were reduced by 8% (effective during the emergency).

Subsoil users were able to purchase goods from domestic producers without competitive procedures:

- This measure allowed subsoil users to purchase goods from one source from Kazakhstani producers without competitive procedures, which could last up to two months. This made it possible to ensure the smooth operation of Kazakhstani companies and tax revenues to the budget (it was in effect during the emergency, and the Ministry is currently working to further extend this norm).

In order to avoid the risks of a number of problems for energy companies related to delays in payment of utility services by consumers, a joint order with the ministries of industry and infrastructure development, national economy, and finance "On approving the Rules for reimbursing utility suppliers for the period of emergency" was issued. 

Maximum tariff increase for electric energy production from energy producing organizations is not allowed:

Since January 1, 2020 the cost of energy-producing organizations for coal has increased (2133 tenge per ton or 9.9 % higher compared to 2019) and the purchase of electric energy from the settlement and financial center for support of renewable energy sources (tariff growth from 31.68 tenge/kWh in 2019 up to 34.62 tenge/kWh in 2020). Despite the above facts, the Ministry during the emergency in the country the maximum tariffs for electricity production are fixed at the approved level.

Uninterrupted operation of fuel and energy complex enterprises organized during the emergency.

Unofficial translation