Kyrgyzstan's budget pays 1 billion soms to keep fuel prices low

Kyrgyzstan's state budget is footing the bill to keep fuel prices artificially low for consumers, with approximately 1 billion soms already paid to oil traders in subsidies. The Antimonopoly Regulation Service revealed that the actual cost of fuel significantly exceeds the prices seen at the pump.

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Around 1 billion soms has already been paid to oil traders in Kyrgyzstan in subsidies to keep retail prices for gasoline, diesel fuel and autogas down.

For AI 92 gasoline, the state covers between 23.1 and 30.1 soms per liter, as it costs 111–118 soms to produce but sells for 87.9 soms. Diesel fuel subsidies range from 25.1 to 37.1 soms per liter, with actual costs between 125–137 soms against a retail price of 99.9 soms. Autogas sees a smaller subsidy of 2.2–5.2 soms per liter, with actual costs at 51–54 soms and retail at 48.8 soms.

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The actual cost of a liter of AI 92 gasoline is estimated at 111–118 soms, while it is sold at filling stations for 87.9 soms. Thus, the state compensates from 23.1 to 30.1 soms for each liter.

The agency highlighted that a driver using 10 liters of AI 92 daily receives a subsidy of about 266 soms, totaling nearly 8,000 soms monthly. To mitigate this financial burden, citizens are advised to drive more efficiently and opt for public transport, bicycles, or walking for short distances.

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Diesel fuel actually costs 125–137 soms per liter, while the retail price is 99.9 soms. The compensation amounts to 25.1–37.1 soms per liter.

Despite these subsidies, fuel prices in Kyrgyzstan remain higher than in some neighboring countries. For instance, AI 92 gasoline costs 87.9 soms per liter in Bishkek, compared to 47.4 soms in Kazakhstan and 72.1 soms in Russia. Unlike Kyrgyzstan, Uzbekistan and Tajikistan do not have similar compensation mechanisms for fuel price differences. The service emphasized that while the current system prevents sharp price hikes, it is funded by the state budget.

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The difference is smaller for autogas: its actual cost is 51–54 soms, while the consumer price is 48.8 soms. The state compensates 2.2–5.2 soms per liter.