BAKU, Azerbaijan, November 5. Kazakhstan is taking gradual steps toward liberalizing its fuel market, while balancing economic reforms with social stability, said Yernar Akhmettayev, Senior Research Analyst at Eurasian Energy Service, S&P Global Commodity Insights, during a recent webinar, Trend reports.
"The fuel market in Kazakhstan is not a classic free market," Akhmettayev explained. "Fuel prices are partially regulated by the state to curb inflation, avoid shortages, and ensure social stability".
In January, the Ministry of Energy approved a decree lifting state regulation on several fuel types, including gasoline grades 92 and 95 and diesel. According to Akhmettayev, this move is part of a broader reform aimed at introducing market-based pricing not only in fuel, but also in utilities, gas, and other sectors. "The main goal of these changes is to create conditions for attracting investment and to prevent fuel shortages in the domestic market," he said.
While official price controls on gasoline and diesel were formally removed as far back as 2015–2016, Akhmettayev noted that in practice, the state continued to keep prices low through administrative controls and limiting margins at every stage of supply.
The analyst recalled that tensions peaked in January 2022, when rising prices for liquefied petroleum gas triggered nationwide protests. "In response, the government temporarily reinstated direct price regulation, even for types of fuel that were previously liberalized," he said. However, starting this year, Kazakhstan resumed its policy of gradual liberalization to avoid sharp price fluctuations.
Akhmettayev also pointed out that one of the key challenges remains the significant price gap between Kazakhstan and neighboring countries. "This difference for gasoline ranges from 40% to 140%, and for diesel from 20% to 80%," he said. "It stimulates gray exports - the unauthorized outflow of petroleum products from Kazakhstan to countries where prices are much higher". To minimize these risks, the government has introduced additional accompanying measures.
Overall, Akhmettayev said, Kazakhstan is "making an important step toward market mechanisms, while preserving elements of control due to social sensitivity". Still, as part of the government’s efforts to maintain macroeconomic stability, a moratorium on price increases for RON92 gasoline and diesel fuel was introduced on October 16, which will remain in place "until inflation levels stabilize".