Fuel prices in Kazakhstan may change starting September 22 due to an adjustment in the mechanism for calculating the additional excise tax on fuel. The coefficient applied when the wholesale price exceeds the established threshold will be increased from 50% to 95%, infohub.kz reports.
The new coefficient will apply when the wholesale price of fuel exceeds the established threshold. For gasoline, it is 214,584 tenge per ton; for diesel fuel, 284,350 tenge.
The calculation logic is as follows: the higher the wholesale price relative to the established level, the larger the portion of the excess that will be taken into account when calculating the additional excise tax. Experts fear this will reduce suppliers' profitability and ultimately may affect fuel prices for motorists.
At the same time, prices will not automatically double, notes oil and gas industry expert Anuar Kozhabekov.
"This does not mean that, say, fuel will automatically double in price. The state is increasing the tax that companies pay on the portion of this wholesale price that exceeds the established threshold. This measure, above all, strengthens tax collection from rising wholesale prices. These additional revenues will go to the budget," he believes.
Oil producers fear losses. The Association of Oil Producing Organizations of Kazakhstan, PetroMining, believes that raising the coefficient could create a serious burden on the industry. It emphasizes that a high oil price does not automatically mean superprofits: a significant portion of funds goes to taxes, production, and field development.
According to the association, the tax burden on the industry reaches about 70%. PetroMining Chairman Sayat Boranbekov stated that under the new coefficient, the additional excise tax may exceed the economic effect of market liberalization.
"Now we are facing a major rollback. At a rate of 95%, the additional excise tax exceeds the revenue from liberalization already in September of this year, and the effect for the oil supplier becomes loss-making. In total for the year, this is from about 400 billion to 550 billion tenge. At a rate of 50%, with what we had until September 11, it was a sufficient model, acceptable for both business and the government," the expert notes.
PetroMining also states that oil producing companies need funds for wages, investment, and geological exploration. At the same time, it remains unclear how long the new calculation mechanism will remain in effect.
The association believes that the change in the formula could significantly affect the economics of domestic oil producing companies, and additional business expenses may in the future affect the domestic fuel market.
Earlier, Kursiv Auto reported that in Kazakhstan, deputies proposed compensating for car repairs caused by poor-quality gasoline.