Kazakhstan cuts jet fuel price to boost air hub competitiveness

ASTANA. Jan 21 (Interfax) - Kazakhstan is lowering the price of aviation fuel to support the development of its international air hubs, Energy Minister Yerlan Akkenzhenov said.

"The 'into-wing' price for jet fuel has been lowered from $1,200 to $940 per tonne, with a further reduction to $890 per tonne planned," Akkenzhenov told a government meeting. The move follows a request from President Kassym-Jomart Tokayev, who last week said domestic fuel prices were uncompetitive.

The minister said the initial reduction has already helped attract more flights from international carriers such as Air Atlanta, Hungary Airlines, and One Air. "This effort will continue," he said.

State-owned supplier KazMunayGas-Aero, a subsidiary of the national oil company KazMunayGas (KMG), holds direct "into-wing" refueling contracts with several major airlines, including Turkish Airlines, FlyDubai, and Silk Way West Airlines.

The government expects the cheaper, unified fuel price to draw other major operators such as Lufthansa, Emirates, Qatar Airways, Air China and global cargo carriers to Kazakh airports.