Kyrgyzstan's fuel stocks dwindle as new, expensive supplies arrive amid market pressures

Kyrgyzstan's fuel market is experiencing significant strain as dwindling reserves of previously cheaper fuel collide with the arrival of new supplies at sharply increased prices. The Association of Oil Traders of Kyrgyzstan reported that companies are now signing contracts for diesel fuel at rates between $1,550 and $1,600 per ton, and for AI 92 gasoline at $1,400 to $1,450 per ton.

These newly contracted fuel batches are already beginning to reach Kyrgyzstan. However, the international market continues to offer petroleum products at elevated prices, with diesel currently priced around $1,350-$1,450 per ton and gasoline slightly lower. Adding pressure to the market is robust demand from Russian companies, which are actively purchasing petroleum products, including from Belarus. This increased competition reduces the volume of available supplies for Kyrgyzstan and drives up costs.

The core issue lies in the mismatch between current high purchase prices and the existing parameters for state support, which were calculated based on lower fuel costs. Oil traders are now facing substantial financial risks as they procure fuel at these higher rates without a clear understanding of future compensation. Delaying contract signings for new fuel batches only increases uncertainty over state support terms, potentially impacting future domestic fuel availability.

The Association of Oil Traders emphasized that if these high purchase prices persist, adjustments to state support mechanisms or retail fuel price limits may be necessary. While there is not an immediate shortage of fuel at filling stations, the primary concern is the risk to future supplies due to the escalating costs and the lack of clear governmental support parameters for businesses navigating this volatile market.