In May, gasoline in Kyrgyzstan may rise in price by 1.5-2 soms

During May, prices for gasoline group in the fuel and lubricants market of Kyrgyzstan may increase by 1.5-2 soms per liter. This forecast is given by the Association of Oil Traders.

At present, the Russian market of petroleum products is experiencing an increase in wholesale and selling prices for the gasoline group. Since the beginning of the year, the cost of gasoline has increased by almost 35 percent. The increase in the selling prices of Russian refineries for petroleum products is due to a reduction in oil production by OPEC+ member countries, in particular Russia. OPEC+ member states have decided to reduce production by 1.6 million barrels per day from May 2023. With the introduction of sanctions by Western countries against the Russian Federation, oil production volumes have sharply decreased. This led to a reduction in the production of petroleum products and an increase in the selling prices of refineries.

"In addition, during the spring period, many Russian refineries carry out scheduled preventive maintenance work, which leads to a reduction in supply on the market and an increase in cost. In particular, large supplier plants of the Orsk Refinery, Perm Refinery, supplying petroleum products to Kyrgyzstan, have been undergoing repairs since April. According to the schedule, repair works at the large Omsk refinery are planned from June. This will also lead to an increase in selling prices for petroleum products. At the same time, oil traders intend to continue the policy of smoothing the cost growth and preventing abrupt changes," the oil traders explained their forecast.

The level of selling prices of Russian refineries for diesel fuel has remained consistently high since the beginning of the year. This is due to the presence of a significant export alternative towards China, India, Mongolia.

It should be noted that since the beginning of the year, key players in the fuel market have reduced the cost of fuel at gas stations by 7-8 soms per liter for the gasoline group, or by 13 percent. The price of diesel has decreased, despite the high wholesale and selling prices of Russian refineries. Oil traders took this step because of the beginning of spring field work.