Kyrgyz authorities discuss direct state subsidization of fuel market to curb price growth

BISHKEK. May 21 (Interfax) - Kyrgyz Prime Minister Adylbek Kasymaliev has held a meeting on supplying the domestic market with fuels and lubricants, and the issue of direct state subsidization is being considered, the government's press service said on Thursday.

The current situation related to the rise in petroleum product prices is a direct consequence of the escalating geopolitical situation in the Middle East, Kasymaliev said during the meeting. This factor has caused an increase in purchase prices worldwide.

The Kyrgyz government has so far managed to prevent a sharp price jump at the country's filling stations, he said. This has become possible due to internal fuel reserves, the availability of which makes it possible to mitigate external influence and ensure a gradual increase in fuel prices.

At the meeting with representatives of fuel companies, additional financial and tax instruments were thoroughly worked out, which will be deployed in the event of continued instability in global markets. In particular, the government is considering the issue of direct state subsidization, the press service said.

Following the meeting, Kasymaliev instructed the antimonopoly service to switch to daily monitoring of pricing and inventory levels at all oil depots in the country, while the Energy Ministry was instructed to ensure uninterrupted logistics and replenishment of reserves within the framework of intergovernmental agreements.

In addition, relevant state bodies were instructed to immediately stop any attempts to create artificial shortages or speculative overpricing of fuel.