Kazakhstan to raise wholesale prices for marketable gas 33% from July

ASTANA. May 8 (Interfax) - An increase in wholesale prices for marketable gas in Kazakhstan is planned from July 1, 2026, as part of measures to attract investment into the gas industry, Deputy Prime Minister and National Economy Minister Serik Zhumangarin said.

"We plan to raise the wholesale price of gas. Because today our situation with proven gas reserves is not the best. Under such wholesale prices, private entities are not getting into gas development; it is simply unprofitable for them," Zhumangarin said on the sidelines of a joint session of parliament on Friday.

The decision of the Energy Council provides for an increase in the wholesale price of marketable gas of 33% from July 1 this year, he said.

"This will lead to an increase in inflation of about 0.16% - that is, within 0.2%. It will not have a major impact [on inflation]. I am referring only to wholesale marketable gas," he said.

The current price level does not create incentives for investment in the exploration and development of new fields, he said.

"Price is an incentive and an attractive condition for investors, so we will be forced to raise wholesale gas prices in order to attract investors to this sector," he said.

Otherwise, Kazakhstan may face the need to increase gas imports, he said.

"Or gas will become more expensive for other reasons, because we will import it, and the countries that send gas to us will not spare us," Zhumangarin said.

In addition, the government is considering the possibility of increasing tariffs for railway services. According to Zhumangarin, an increase averaging up to 12% at the first stage is being discussed. If a decision is made, inflation could rise 0.8%.

"But we are still leaning towards the idea that we will stay within the 0.3%-0.5% corridor this year, and this will be sufficient to make the first most important decision regarding those facilities where reconstruction is necessary," he said.

The Kazakh Energy Ministry previously announced plans for a phased three-year increase in wholesale gas prices for the domestic market starting from July 1, 2025. Maximum wholesale prices for marketable gas are raised annually in the country by approximately 33%.