Kazakhstan will keep the freeze on fuel prices at least until the spring of 2026, Kazakh Economy Minister, Serik Jumangarin, said on Wednesday.
Last week, Kazakhstan introduced a freeze on fuel prices in an attempt to curb runway inflation. The government also introduced a moratorium on further increases of utility bills until the end of March 2026.
The freeze on fuel prices will last until “at least” next spring, and is driven by rising fuel prices in Russia, Jumangarin told reporters in the capital Astana, as carried by Reuters.
Russia is a key trade partner for Kazakhstan.
“What’s important for us now is to wait, at least until next spring. We need to wait for the situation in neighboring countries to stabilize,” the Kazakh minister said.
“The situation is actually related to the current events unfolding due to the conflict between Russia and Ukraine, and petroleum product prices in the neighbouring country are rising sharply,” Reuters quoted the economy minister as saying.
Earlier this month, the National Bank of Kazakhstan raised the key interest rate to an unprecedented 18% after annual inflation accelerated and hit 12.9% in September.
Earlier this week, Kazakhstan’s Karachaganak field producing oil and gas condensate curbed production following a Ukrainian drone attack at Russia’s Orenburg complex. The attack highlighted Kazakhstan’s dependence on Russian energy infrastructure.
Gas extracted in northwest Kazakhstan flows north for processing before returning for domestic use or export. When Orenburg stops, Karachaganak’s condensate and gas production both fall, threatening more than 250,000 barrels per day of oil-equivalent output.
Despite the halt at the Orenburg processing plant in Russia, Kazakhstan’s gas supply remains uninterrupted, the Kazakh Energy Ministry said on Monday, refuting reports of the contrary in the Kazakh media.
“The stability of supply is guaranteed by reserve mechanisms which have been put in place in advance,” Kazakhstan said.
By Tsvetana Paraskova for Oilprice.com
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