AN ORDER WAS ISSUED TO REGULATE THE RETAIL PRICE OF LIQUEFIED PETROLEUM GAS FOR CARS
AN ORDER WAS ISSUED TO REGULATE THE RETAIL PRICE OF LIQUEFIED PETROLEUM GAS FOR CARS
Today, July 1, 2023, the order of the chairman of the agency of the Republic of Kazakhstan for the protection and development of competition No. 8 of June 30, 2023 entered into force. The document presents changes in the threshold levels of retail prices for autogas in connection with the increase in wholesale prices.
By order of the minister of energy No. 238 of June 26 this year, the wholesale price of liquefied petroleum gas increased by 4 tenge per 1 liter. Also, in April of this year, the committee for regulation of natural monopolies increased the tariff for the transportation of road gas by rail, respectively, the consumption of market entities for the supply of gas by rail increased to 2 tenge per 1 liter.
Increasing the costs of gas filling stations for the purchase and transportation of gas also requires a proportional adjustment of retail prices.
In order to avoid losses in gas trading by gas filling stations and to prevent its deficit in the regions, in regions that do not require transportation by rail (or at insignificant distances), the marginal cost of a liter increased by 4 tenge. In regions where price changes are required due to the significant distance of gas supply by rail from factories to places of consumption, the volume of gas consumption increased by 6 tenge per liter.
You can get acquainted with the accepted order on the internet resource
https://zan.gov.kz/client/#!/search/results/jdn=32979
Definition:
In accordance with paragraph 5 of Article 20 of the law of the Republic of Kazakhstan "on gas and gas supply" on July 1 of this year, the Ministry of Energy raised the wholesale price of SMG from 33,600 tenge to 40,320 tenge without VAT (by 20%). This requires a proportional increase in the retail price per 1 liter (with VAT) by 4 tenge.
On April 27 of this year, the Ministry of national economy of the Republic of Kazakhstan increased the regulated tariffs for railway transportation by 28%, which affects retail sales with VAT in regions requiring railway delivery by 2 tenge/liter.
We note that on June 29, 2023, the head of state signed the law of the Republic of Kazakhstan "on amendments and additions to some legislative acts of the Republic of Kazakhstan on the regulation of the turnover of liquefied gas and housing and communal services". This law provides for the transfer of powers from the antimonopoly authority to the Ministry of energy to approve retail prices for liquefied gas.
You can get acquainted with the adopted law here
https://www.akorda.kz/kz/memleket-basshysy-kazakstan-respublikasynyn-kommunaldyk-sharuashylyk-maseleleri-boyynsha-ozgerister-men-tolyktyrular-engizu-turaly-kazakstan-respublikasynyn-zanyna-kol-koydy-295578