Kazakhstan bans fuel exports to Tajikistan

RUSSIA / FSU POLITICS - In Brief 05 Nov 2023 by Alex Teddy
On October 20 Kazakhstan made the move saying it needs fuel for itself. The bank covers liquefied petroleum gas, propane and butane. The ban is to last until 2026. A fuel price hike in Kazakhstan in January 2022 caused massive protests and riots that left over 200 dead. Therefore the government is very worried about the fuel prices rising again.  Tajikistan bought almost all its gas from Kazakhstan until now. This gas provided about half the fuel for automobiles. Taxi fares and bus fares have leapt in Tajikistan. Few Tajiks own cars but everyone buys products that are delivered by truck. Being the poorest country out of 15 former Soviet republics, Tajikistan is very vulnerable to fuel price shocks. Gazprom sells gas to Tajikistan. President Rahmon is said to be very friendly with the company. China has financed an oil refinery in Tajikistan. It is supposedly almost ready to start production. Its capacity is said to be 400,000 tonnes. Russia and Turkmenistan sell ready-to-use fuel to Tajikistan. Tajikistan wants to move away from having to buy this. The government wants to buy fuel from Iran.  There are numerous monopolies in Tajikistan, and this aggravates the situation, impacting fuel delivery in particular. In 2022 inflation in Tajikistan was officially 4%. Unofficially is it thought to be 10%. Public sector workers have been badly hit. The World Food Program says that the country has experienced price rises of 12%-18% for staples. The average income is USD 200 per month.  In late October 2023 the cost of fuel rose 24% compared to September 2023. The government claims price rises will be short lived.

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