The marginal prices for liquefied gas in Kazakhstan will be reduced to the level of 2017
In the 3rd quarter of 2020, the price for wholesale sale of liquefied petroleum gas will be 28000 tenge, excluding VAT, the press service of the Ministry of energy of the Republic of Kazakhstan reports.
In accordance with the Law of the Republic of Kazakhstan "On gas and gas supply" (hereinafter - the Law), in the Republic of Kazakhstan the marginal prices for liquefied petroleum gas sold as part of the plan for the supply of liquefied petroleum gas to the domestic market of the Republic of Kazakhstan outside electronic trading platforms are subject to state regulation (hereinafter - the marginal price).
The marginal price is approved by the Ministry of energy in coordination with the Ministry of national economy a quarterly, and be valid throughout the territory of the Republic of Kazakhstan.
The marginal price from the 1st quarter of 2018 to the second quarter of 2020 remained at the level of 38 701,67 tg/t excluding VAT.
The marginal price for the 3rd quarter of 2020 is set at the level of 28000 tg/t excluding VAT. Previously, the marginal price at the level of 28000 tg/t excluding VAT was set in the 1st quarter of 2017.
At the same time, in order to minimize the consequences for domestic producers in the event of an excessive fall in prices on foreign markets that affect the level of the marginal prices approved by the Ministry, appropriate rules to prevent the marginal price from falling below the level of the price set in the 1st quarter of 2017 are provided, i.e. 28000 tenge/t excluding VAT.
In turn, reducing the cost of wholesale sales of liquefied petroleum gas will help reduce the cost of:
- retail sale of liquefied petroleum gas through group tank installations to domestic consumers;
- sales of liquefied petroleum gas in household cylinders to the citizens;
- sales of liquefied petroleum gas through gas stations (avtogaz);
- sales of liquefied petroleum gas to industrial consumers.
Accordingly, this will give a positive multiplier effect and lead to the reduction of cost part of consumers, which is especially important in the recovery period after the emergency.
Unofficial translation