Kazakhstan to extend ban on gasoline and diesel exports

Central Asia (KZ) – Kazakhstan is extending a ban on the export of gasoline, diesel and certain types of petroleum products from the country by road.

The decision was taken after a meeting of the Interdepartmental Commission on Foreign Trade Policy and Participation in International Economic Organizations (IEC) chaired by Deputy Prime Minister of the Republic of Kazakhstan Serik Zhumangarin.

The previous ban on the export of petroleum products was implemented on March 29 for a period of six months until the end of September. Previously, Kazakhstan had also extended the ban on road exports of gasoline, diesel and other petroleum products several times to avoid domestic fuel shortages. The cost of fuel and lubricants in the republic has historically been significantly lower than in neighboring countries (Russia, Kyrgyzstan and Uzbekistan), which has stimulated the growth of consumption by transit vehicles and fuel exports under the grey scheme. In particular, the Ministry of Energy reported that transit heavy trucks are exporting large quantities of fuel from Kazakhstan in additional tanks installed in addition to standard tanks.

At the IMC meeting, proposals to impose export duties on a variety of raw materials were also considered. The Ministry of Finance proposed the creation of an obligation to increase domestic processing and loading of raw materials by enterprises, which would increase budget revenues. The meeting decided that these proposals will be finalized by industry government agencies together with the Atameken National Chamber of Entrepreneurs and Associations in accordance with the new tax code.