Kazakhstan’s Cheap Fuel Fuels Smuggling Surge

CEO of Kazakhstan’s RV-Oil&Gas company Rassul Abdukhalilov has said that significantly lower prices for AI-92 gasoline and diesel fuel in Kazakhstan compared to neighboring countries led to the illegal export of up to 50,000 tons of fuel monthly.

Abdukhalilov made these remarks at the “Caspian and Central Asia - Refining, Petrochemicals, Trading and Logistics” forum held in Azerbaijan’s capital Baku, The Caspian Post informs via local media.

Abdukhalilov explained that this fuel outflow has caused shortages in Kazakhstan’s domestic market, which are being offset by increased imports from Russia. He pointed out that price controls implemented in the early 2000s ultimately resulted in market imbalances with neighboring countries, contributing to domestic deficits, dampening investment appeal, and delaying essential reforms.

Since February 2025, Kazakhstan has abolished these price regulations. Over the past nine months, diesel prices have risen by 10 per cent, while gasoline prices have increased by 14 per cent. Forecasts suggest prices will continue climbing through the end of 2026, nearing Russian fuel price levels.

Abdukhalilov also highlighted that these reforms will have ripple effects across the region and may be relevant to Azerbaijan, where the fuel market remains regulated.