Gas prices for commodities will increase in Kazakhstan.
High Time for Gas Price Overhaul in Kazakhstan!
Say goodbye to the old gas prices, 'cause they're about to skyrocket! The Kazakh government has announced new wholesale prices for marketable gas in the internal market, effective from July 1, 2021, until June 30, 2022.
These prices have ascended by an average of 11%, varyin' by region, reports Total.kz, citing the Kazakh Ministry of Energy. The reason? Those main gas pipelines? They've been pushin' their luck since the end of time, sufferrin' from numerous critical defects, as revealed by diagnostic tests. And let's not forget, a whopping 70% of the strategically important gas infrastructure is old as the hills!
By law, the Ministry of Energy decides the wholesale prices for marketable gas while retail prices get regulated by the Ministry of National Economy. To keep gas prices affordable, KazTransGas, the national operator, has been subsidizin' the domestic market through gas exports every year. Since 2015, these subsidies have racked up approximately 425 billion tenge in losses.
It's been a while since these prices saw a change - January 1, 2019, to be exact. Back then, they were reduced by between 3.8% and 17.5% in various regions, and they've remained stagnant ever since. But folks, we're not in Kansas anymore!
Let's talk numbers: the current wholesale prices are lower than the cost of the supplied gas in various regions. This mathematical discrepancy means KazTransGas' expenses will likely rise in the future. Ignorin' these investment programs could lead to more pipeline defects, potentially inflictin' irreversible damage on the country.
So, what factors influence gas prices beyond Kazakhstan's borders? Well, global demand and supply, infrastructure and transportation costs, geopolitical factors, domestic production and consumption, and international market trends are some key contributors.
Nevertheless, to find the specific wholesale gas prices in Kazakhstan for the period from July 1, 2021, to June 30, 2022, you might have to check out local energy market reports or databases tailored for Kazakhstan.
Despite the subsidies provided by KazTransGas, the increasing costs in the energy industry have mandated an upward revision in wholesale gas prices. Consequently, this move could potentially impact the finance sector, as the new gas prices may influence various industries reliant on energy resources.
