Sylvie Willis
Fuel prices in Kazakhstan have been a contentious issue, with the government facing a delicate balancing act between aligning prices with neighbouring countries and avoiding political backlash from its citizens. In April 2023, the acting energy minister announced an 11% hike in 92/93-octane gasoline prices and a 20% increase in diesel prices. This move aimed to address fuel shortages in the domestic market due to illegal exports caused by price disparities. The decision carries political risk, as demonstrated by the violent riots in 2022 triggered by a sharp rise in liquefied petroleum gas prices. As of 2023, the price of gasoline in Kazakhstan stands at 205 tenge ($0.45) per litre, while diesel prices are set at 295 tenge ($2.50) per litre. Beyond automotive fuels, solid fuel use remains prevalent in rural areas, particularly in regions lacking district heating and natural gas infrastructure.
| Characteristics | Values |
|---|---|
| Price of gasoline | 205 tenge ($0.45) per litre or $1.70 per gallon |
| Price of diesel | 295 tenge ($2.50) per gallon |
| Percentage increase in gasoline prices | 11% |
| Percentage increase in diesel prices | 20% |
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What You'll Learn
Gasoline and diesel prices
In April 2023, Kazakhstan's acting energy minister, Bolat Akchulakov, announced an increase in fuel prices to align with those in neighbouring countries. This decision aimed to address the price disparities that had led to illegal exports and deterred investments in the refining industry, causing fuel shortages in the domestic market.
The planned price adjustments included an 11% increase in the ceiling price of 92/93-octane gasoline and a 20% hike in diesel prices. As a result, the cost of gasoline would rise to 205 tenge (approximately $0.45) per litre or $1.70 per gallon. Simultaneously, the price of diesel would increase to 295 tenge per litre or $2.50 per gallon.
While these price adjustments aimed to resolve economic challenges, hiking gasoline and diesel prices carried political risks. In early 2022, a sharp increase in liquefied petroleum gas prices sparked street protests that escalated into violent riots. Thus, the Kazakh government faced a delicate balance between economic reforms and maintaining social stability.
The fuel price increases were part of Kazakhstan's efforts to align its energy sector with regional markets and address the challenges of illegal exports and fuel shortages. However, the political sensitivity of fuel prices underscored the complexities of energy policy and the potential for social unrest when prices rise rapidly.
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Fuel shortages
In 2024, Russia asked Kazakhstan to set up an emergency reserve of 100,000 metric tons of gasoline to supply to Russia in case of shortages exacerbated by Ukrainian drone attacks and outages. Kazakhstan, which is highly dependent on fuel imports from Russia, has also restricted fuel exports until the end of 2024, except for humanitarian purposes.
In August 2025, motorists across Kazakhstan reported widespread shortages of AI-95 gasoline, particularly along major highways and in the country's western regions. The Ministry of Energy attributed the shortages to increased tourist and transit traffic. Price caps on gasoline were lifted in January 2025, after which prices began to steadily rise. The resulting price differentials have made illegal fuel exports more profitable, aggravating domestic shortages.
Energy expert Olzhas Baidildinov warned of a growing shadow market, driven in part by the weakening of the Kazakh tenge against the Russian ruble. With the exchange rate at 6.6 tenge per ruble, the economic incentive for illicit exports from Kazakhstan is strong. Baidildinov predicted further shortages by the autumn of 2025 if the trend continued. Analysts warned that if U.S. tariffs were imposed on countries trading oil and petroleum products with Russia and Russian exports remained constrained, Central Asia could experience persistent shortages, surging inflation, and a deepening reliance on shadow markets.
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Solid fuel use in rural areas
Fuel prices in Kazakhstan are given in US dollars per litre, though the exact prices are unclear.
In Kazakhstan, solid fuel use is more prevalent in rural areas than in urban ones. In 2018, 55% of rural households used coal and/or firewood, compared to 17% in urban areas. This is because solid fuels are more commonly used in regions without district heating and natural gas infrastructure. In rural areas without gas pipelines, solid fuel use is extremely common, with 95-99% of detached houses using solid fuels in East Kazakhstan, North Kazakhstan, Pavlodar, Akmola, and Karaganda. In contrast, regions with a gas pipeline network, mostly in western Kazakhstan, have much lower rates of solid fuel use.
Solid fuel use is a major source of air pollution in Kazakhstan. In 2018, household coal combustion created almost all of the residential sector's particulate matter 2.5 (PM2.5), carbon monoxide (CO), sulphur oxide (SOx), and non-methane volatile organic compound (NMVOC) emissions, and 88% of nitrogen oxide (NOx) emissions. This pollution causes around 2,800 premature deaths per year and costs the economy over $1.3 billion, or 0.9% of GDP, in healthcare expenses.
High solid fuel consumption in rural areas also limits economic development and contributes to migration to urban areas. In addition, solid fuel use in rural areas creates climate and health concerns. However, Kazakhstan has rich coal resources, with current production levels expected to last over 200 years.
To reduce emissions, targeted policy actions focusing on rural and remote areas could accelerate Kazakhstan's energy transition. The country has set a target of generating 15% of its electricity from renewable energy sources (excluding large hydropower) by 2030.
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Household fuel use by region
Household fuel use in Kazakhstan varies by region, with differences influenced by factors such as climate, infrastructure access, and housing types. Solid fuel use, for instance, differs between urban and rural areas, with higher usage in the latter.
In 2018, 30% of Kazakh households used coal and/or firewood, with a notable variation between urban (17%) and rural (55%) areas. Solid fuels are more commonly used in regions lacking district heating and natural gas infrastructure, such as northern, central, and eastern Kazakhstan. Specifically, East Kazakhstan, North Kazakhstan, Pavlodar, Akmola, and Karaganda have high solid fuel usage, with 95%-99% of detached rural houses relying on these fuels.
Despite access to natural gas pipelines, some regions like Kyzylorda (95%), Almaty (81%), South Kazakhstan (57%), and Kostanay (80%) exhibit high solid fuel usage among detached rural households. This may be due to factors like connection costs, boiler expenses, gas prices, network distribution issues, and income poverty. Central Kazakhstan, including Nur-Sultan city and the Karaganda and Akmola regions, is expected to transition from coal to gas with the completion of the Saryarka gas pipeline.
The daily coal consumption rate in Kazakhstan is higher in rural areas (33 kg) than in urban areas (31 kg). This could be attributed to greater stove and building efficiency in colder regions, as well as the shorter heating periods in these areas. Heating is a critical need in Kazakhstan, with most regions experiencing heating seasons lasting over six months, and temperatures ranging from 2°C in the north to 13°C in the south.
The use of solid fuels varies, with some households using coal for heating and cooking, while others use a combination of fuels, such as coal, firewood, and propane. In 2018, 43% of households used coal for heating and cooking, 36% for heating only, and 18% for heating, water heating, and cooking. For cooking, 73.9% of households rely on fossil sources like natural gas, liquefied propane, butane, and coal, while 41.6% use electrical appliances.
Transport fuel consumption patterns also vary by region. Mopeds and motorcycles are the most economical vehicles, with average fuel consumption of 2.8 and 3.9 liters per 100 kilometers, respectively. Cars consume 10.9 liters per 100 km, while trucks have the highest consumption at 19 liters per 100 km. Rural cars and trucks are more fuel-efficient than their urban counterparts, while urban motorcycles demonstrate relatively lower fuel consumption.
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Average daily coal consumption
As of 2016, Kazakhstan consumes 86,633,850 tons of coal per year, ranking 13th in the world for coal consumption. This amounts to 4,717,694 cubic feet of coal per capita every year, or 12,925 cubic feet per capita per day.
In 2023, coal consumption in Kazakhstan decreased by 1.7% compared to the previous year, amounting to 1.39 exajoules. This decrease may be attributed to various factors, including the availability and adoption of alternative energy sources, such as natural gas.
Indeed, natural gas usage is prominent in the western regions of Kazakhstan due to developed gas pipeline infrastructure and low gas prices. However, solid fuel use, including coal, remains high in certain rural areas despite access to natural gas. These regions include Kyzylorda, Almaty, South Kazakhstan, and Kostanay. The reliance on coal in these areas could be influenced by factors such as the high cost of connecting to the pipeline, the expense of gas boilers, income poverty, and the lack of distribution pipelines.
The correlation between average coal consumption and the duration of the heating season also provides insights into regional variations in coal usage. Regions with shorter heating periods tend to have higher daily coal consumption, possibly due to greater stove and building efficiency.
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Frequently asked questions
The price of gasoline in Kazakhstan is 205 tenge per litre, which is equivalent to $0.45 or $1.70 per gallon.
The price of diesel in Kazakhstan is 295 tenge per litre, which is equivalent to $2.50 per gallon.
Yes, Kazakhstan's acting energy minister, Bolat Akchulakov, announced plans to raise fuel prices by 11-20% in May 2023. This increase is intended to bring fuel prices in line with those in neighbouring countries.
