Kazakhstan to raise LPG prices 15% in Aug

ASTANA. July 21 (Interfax) - Kazakhstan's Energy Ministry plans to increase the maximum wholesale price for liquefied petroleum gas by 15% starting August 2025, according to a draft order published by the Open Online Legal Database for public discussion.

"Under the order, the LPG wholesale price cap for filling stations will rise from 51,932 tenge to 59,722 tenge per tonne, while retail prices will increase by 7 to 10 tenge, depending on the region," the ministry said.

Following adjustments, the lowest retail price will be in the Mangystau region or 77 tenge compared with today's 72 tenge, while the highest price - or 117 tenge vs. today's 112 tenge - will apply in the Akmola, Almaty, East Kazakhstan, Kostanay, Karaganda, Pavlodar, North Kazakhstan, Abay, Zhetysu and Ulytau regions.

The ministry said the price adjustment was necessary due to LPG production losses. It said Kazakhstan's LPG prices remained among the lowest in the CIS.

"The current production cost of LPG ranges between 70,000 and 80,000 tenge per tonne, while the wholesale price cap for producers is set at 51,932 tenge per tonne," says a press release accompanying the published draft order.

This discrepancy has led to a funding shortfall for producers, limiting their ability to modernize facilities and conduct scheduled maintenance. With LPG production becoming unprofitable, companies are shifting to more lucrative products, which poses a threat to the government's efforts to satisfy the domestic demand.

Meanwhile, LPG consumption has been steadily increasing - from 1.8 million tonnes in 2022 to 2.4 million tonnes in 2024. Experts anticipate that demand will rise by another 200,000 tonnes in 2025, reaching 2.6 million tonnes, potentially creating a 30-40% shortage of LPG supply, according to the Energy Ministry.

The draft order will remain open for public discussion until July 23.

The last LPG price hike occurred in February 2025, when the ministry also revised pricing regulations, allowing adjustments at least twice a year (previously only every six months) with a 15% cap per revision, up from 12%. Additionally, the annual wholesale price increase limit was raised from 20% to 33%, based on the national average.