Between a spike in crude oil prices and steep inflation, numerous countries experienced large increases in prices for petroleum products – and often other types of products, too – since Russia invaded Ukraine last year.
Some governments have taken action to hold down finished lubricant costs or to ensure adequate supply – actions ranging from price controls on the products themselves to helping importers obtain letters of credit on shipments of lubes or base oils.
Kazakhstan’s government went the other direction, banning exports of lubes and other petroleum products in an effort to ensure supply and hold down prices. This month the Ministry of Energy extended the ban for another six months, according to an order published Friday on the government’s legal acts website.
The new extension is effective Aug. 14. The ban was introduced in July 2022 and extended another six months in February.
According to the text of the government order, the ban excludes fuels and lubricants that are transported in the original equipment manufacturers’ gasoline tanks or crankcases of the vehicles in use, and for those products transported in canisters not larger than 20 liters. Also, excluded are exports of aviation oils and fuels intended for research and development of additives as well as other types of fuel and oil specimens intended for testing.
The export embargo of petroleum products by automobile transport is supposed to secure low prices and stable supply of petroleum products, according to the Ministry of Energy. “We are keeping the development of the national economy stable and sustainable and won’t allow shortage of petroleum products on the domestic market,” a ministry official said recently, local media reported.