Kazakh Rail Tariff Hike Could Push Up Gasoline Prices in Kyrgyzstan

Kazakhstan’s national railway company, Kazakhstan Temir Joly, is set to increase freight transportation tariffs by 16% starting March 7. Kyrgyzstan fears this could lead to a rise in fuel prices, Orda.kz reports.

According to the Kyrgyz outlet Economist.kg, the tariff hike will impact both exports and transit shipments through Kazakhstan. Since Kyrgyzstan imports around 90% of its gasoline from Russia — most of which is transported via Kazakhstan — higher transit costs are expected to drive up fuel prices.

This isn’t the first time Kazakhstan has raised transit tariffs. In 2024 alone, they have been increased five times, leading to a total rise of 31% in transportation costs, Economist.kg noted.

Compounding the issue, the strengthening Russian ruble is putting additional pressure on the Kyrgyz economy, which is closely tied to Russia’s. A spike in fuel prices is likely to have a ripple effect, making other consumer goods more expensive as well.

Meanwhile, Kazakhstan’s Financial Monitoring Agency recently uncovered yet another fuel smuggling scheme involving gasoline being illegally shipped to Kyrgyzstan. Fuel smuggling has been an ongoing problem, with Kazakh authorities estimating that up to 45,000 tons of fuel are illegally exported each month. To curb this, Kazakhstan plans to extend its ban on fuel and lubricant exports for another six months.

Original Author: Nikita Drobny