At an extended government meeting, the head of state Kassym-Jomart Tokayev raised the issue of the need to transition to new operating standards for energy and utility facilities. In his assessment, although the acute crisis in the energy and utility sectors has been overcome, the current situation requires systemic changes.
The President criticised the existing practice of appointing non-specialist managers to leadership positions in public utilities. According to him, when utility companies are run by lawyers and other humanities graduates instead of specialised professionals, it leads to accidents at thermal power stations, which damage the country's reputation.
Particular attention was paid to the issue of tariff setting. The head of state noted that in most CIS countries, tariffs and prices for electricity, gas, and oil products are significantly higher than in Kazakhstan. This situation creates imbalances in the economy and fosters the development of the shadow market, particularly the smuggling of fuel to neighbouring countries.
In light of this statement, a recent initiative by the Ministry of Energy has become particularly relevant. The ministry has drafted an order on abolishing state regulation of fuel prices. The decision was prompted by the unprecedented difference in fuel costs with neighbouring states: a litre of AI-92 in Kazakhstan costs 205 tenge, while in Russia the price reaches 288 tenge, in Kyrgyzstan – 385 tenge, and in Uzbekistan – 489 tenge.
This price gap has sparked large-scale illegal export of oil products. According to the ministry, monthly smuggling volumes reach 45,000 tonnes. This poses serious risks to the country's fuel security: over ten months of 2024, reserves of petrol fell from 453,000 to 295,000 tonnes, and diesel fuel – from 554,000 to 279,000 tonnes.
The proposed reform involves a phased transition to market-based pricing, which should facilitate the modernisation of the oil refining industry. Plans include increasing refinery capacity from 18 to 28 million tonnes per year. At the same time, the ministry emphasises the social focus of the reform and promises to maintain support measures for vulnerable segments of the population.
It is worth recalling that the initiative has already been supported by the Agency for the Protection and Development of Competition. Its chairman, Marat Omarov, previously stated the need to abolish price caps on fuel to eliminate market imbalances.
The President's statement on the need to revise tariff policy and align it with market conditions has effectively marked a new stage in the development of the country's energy sector. The proposed pricing reform in the fuel market could be the first step in implementing this course.