Kazakhstan, Astana, April 30 / Trend , K. Arinova/
Company Gelios has decided to cut fuel prices in its petrol stations in majority of Kazakhstan's regions, Gelios brand manager Asel Tatarkhanova said.
"The fall in prices is connected with the drop in demand for oil products by large corporative and retail clients and increased volume of import of Russian fuel at lower prices," Tatarkhanova said.
He said prices at Gelios petrol stations have been cut seven percent on average. The significant drop in prices occurred in Aktau and Atiarua in west and Kostana and Petropavlovsk in north of country.
Gelios representatives said Russian fuel hold great share in the market specifically in northern and western Kazakhstan and border with Russia. It is more beneficial for Russia to import fuel to Kazakhstan than export it to Europe as Russia trades with neighbor country without dues.
"The situation is already ambiguous in Kazakhstan's domestic market: fall in demand in both wholesale and retail segment and increase in import lead to a sharp fall in sales by local producers," company's brand manager said.
Gelios says expansion of lubricants by cheap Russian fuel amid the ongoing crisis can seriously affect local producers.
"Kazakh plants have run out of resources and in need of upgrading. Because old technologies they use lead to rise in cost of products. Russia reduces expenditures by more modern refineries," Tatarkhanova said.
She said overstocking of the market and fall in fuel prices has a negative impact on lubricant sellers including Gelios which has to reduce losses on its own. The afore-said measures will enable to reduce expenditures on investment projects, repairs of technological equipment, upgrading production capacities and applying new technologies.
She said the situation of Russian oil product suppliers who exports their products in a profitable way will change and it will impact Kazakhstan's market.
"The import will be reduced to a great degree. Local producers will not be able to restore previous production capacities. Insufficient supply of the market by local producers will lead to a shortage of fuel and sharp price rise," she said.
Gelios is one of the major lubricant suppliers in Kazakhstan. The company owns over 600 petrol stations in the country. The number of petrol stations varies from 4,500 to 5,000 in Kazakhstan.
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