Rising LPG prices prompt crisis in Kazakhstan

Market: LPG, Oil products
05/01/22

Kazakhstan's government has resigned and a state of emergency has been declared in parts of the country following violent protests over rises in LPG prices.

President Kassym-Jomart Tokayev announced the resignation of the government today during a meeting about the "socio-economic situation" in the country. Ministers will continue to carry out their duties until a new government is formed. Tokayev said the government had proved unable to carry out "one of its main tasks — keeping inflation in check."

States of emergency were declared in the western Mangistau region, as well as in the country's largest city Almaty. Former Kazakh energy minister Nurlan Nogayev, who was appointed governor of Mangistau region by presidential decree in September, urged citizens taking part in "events" to go home.

Yesterday the government said the price of LPG — widely used as motor fuel in Kazakhstan — would be reduced to 50 tenge/l (11¢/l) in Mangistau. Kazakhstan's energy minister Magzum Mirzagaliyev had said the previous day that the price of LPG in the region was 80 tenge/l.

Public unrest is rare in authoritarian Kazakhstan. The last major outbreak was just over 10 years ago when security forces fired on protesters in the Mangistau region town of Zhanaozen, killing at least 15 people. This had followed clashes between police and former oil workers from Uzenmunaigaz and Karazhanbasmunai — subsidiaries of Kazmunaigaz (KMG) upstream arm KMG E&P — who had occupied the main square having been sacked after going on strike over pay and conditions.

By John Gawthrop

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