The Reformation of the Kazakhstan government which burned the niche market for brutally donated car fuel this week, triggered the largest public protest in the years when the demonstrators accused the poor.
Kazakhstan stated an emergency in the capital and elsewhere on Wednesday after the demonstrators stormed and burned public buildings.
Protests were triggered by the reform of the fuel market first in a hurry in 2015 which came into force at the beginning of the month trying to remove the country’s price caps for butane and propane – often referred to as ‘road fuel for the poor’ because of the low.
Because of the low cost – while ensuring the local market is properly supplied.
Previous subsidies have created a situation when Kazakhstan, a major oil producer, regularly faces the lack of butane and propane.
Producer – including company business A.S.
Chevron and Exxon – prefer export to get better prices.
When prices are fully liberalized on January 1.
The expectation of the government is supply to the domestic market will rise and help overcome chronic shortages.
But the size was donated, because the price almost doubled last night to 120 Tenge ($ 0.30) per liter.
The areas such as mangistau are rich in oil, where protests begin, depend on butane and propane to refuel as much as 90% of vehicles.
Alternative motor fuel such as gasoline and diesel are more expensive at 180-240 Tenge ($ 0.40-0.55) per liter.
Popular anger has run high due to increased inflation which is close to 9% year-to-year – highest in more than five years – leading the central bank to raise interest rates to 9.75%.
Resource-rich countries consisting of 19 million are estimated to have a million people living below the poverty line while also counting several dollars in the Forbes list.
Protests have not had an impact on Kazakhstan oil production.
President Kassim-Jomart Tokayev has ordered his acting cabinet to reverse the increase in fuel prices.
Explanation: Why Fuel Market Reform Niche triggered the main Kazakh protest
