Today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev has considered the measures to prevent price surges for socially important goods and services.

Chairman of the National Bank Daniyar Akishev reported that the effect of tenge devaluation on domestic prices in 2017 has almost come to a close. Currently there is moderate growth dynamics in the food and paid public services sectors. The National Bank expects that inflation for the year will remain within the target corridor from 6 to 8%. For 2018, the National Bank has set a target benchmark for inflation at a lower value, from 5 to 7%. By 2020, the National Bank expects inflation to slow down to 4%. All of the ongoing measures are aimed at achieving these goals.

Minister of Energy Kanat Bozumbayev reported that 111.1 million tonnes of oil was processed for the domestic petroleum products market, which is 3.6% more than in the same period of last year. The production of gasoline amounted to 2 million 270 thousand tonnes, which is also higher than the figures for the same period in 2016. The average price for AI-92 gasoline in January was 135 tenge per liter, in September the price increased to an average of 150 tenge, showing an increase of 11%. The share of imports of AI-92 gasoline in the period from July to August increased from 15% to 30% in September, which is due to the maintenance of refineries and the modernization that is being completed.

Accordingly, in connection with this, there was a decrease in supplies to the domestic market and an increase in imports, which ultimately affected the price increase.

The Ministry of Energy closely monitors the price situation, for example, administrative charges were brought against several gas stations. At the same time, steps are being taken to correct the current situation.

Thus, the Shymkent refinery has increased the processing plan for October by 110 thousand tonnes, which will provide the domestic market with additional supplies of gasoline and diesel fuel. Due to the full operation of all gas stations in November, it is planned to reduce the share of import of AI-92 gasoline to 30% and to 20% in December, which will help stabilize the situation.

In turn, First Deputy Minister of Agriculture Kairat Aituganov reported that the work of food stabilization funds has become more systematic compared to last year and this generally impedes the surge of prices for socially significant products.

During the July 11th Government meeting the Akimats were instructed to purchase products for stabilization funds. As of now, the Akimats need to intensify this work and complete it by November 15 of this year.

The meeting was addressed by Deputy Akim of Atyrau region Alibek Nautiyev, Akim of North Kazakhstan Kumar Aksakalov, Akim of Pavlodar region Bulat Bakauov, Deputy Akim of South Kazakhstan region Tulegen Sarsembayev, and Akim of the city of Astana Asset Issekeshev.

Bakytzhan Sagintayev instructed all branch state and local executive bodies to tightly control the issue of surging prices for goods and services, especially for socially important food products.

Published: 03 October 2017



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