Published by Global Banking & Finance Review®
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
Kazakhstan's economy minister announced a fuel price freeze extension due to rising prices in Russia, influenced by the Ukraine conflict. Inflation and past unrest highlight the issue's importance.
ASTANA (Reuters) -Kazakhstan's economy minister said on Wednesday that a freeze on fuel prices would remain in place until "at least" next spring, saying that the move had been driven by rising fuel prices in Russia, Kazakhstan's neighbour and main trade partner.
Speaking to reporters in the capital, Astana, Serik Jumangarin, the minister, said: "What's important for us now is to wait, at least until next spring. We need to wait for the situation in neighbouring countries to stabilise."
He added: "The situation is actually related to the current events unfolding due to the conflict between Russia and Ukraine, and petroleum product prices in the neighbouring country are rising sharply."
Kazakhstan, a minerals giant which produces around 2% of world oil supply, last week introduced sweeping price controls on fuel and utility tariffs, amid accelerating inflation, which was at 12.9% in September.
Earlier this month, the central bank raised interest rates to an unprecedented 18%.
Fuel prices have been a fraught matter in Kazakhstan. A sudden rise in the price of liquefied petroleum gas (LPG) in January 2022 touched off Kazakhstan's worst unrest since the country of 20 million gained independence from the Soviet Union in 1991.
That year, fuel price protests grew into widespread unrest, which saw hundreds killed and Russian troops deployed as part of a regional peacekeeping force to restore order.
Last week, a Ukrainian drone strike on Russia's Orenburg gas plant, which processes gas from Kazakhstan's Karachaganak field, sharply reduced the plant's capacity for several days.
Astana has walked a diplomatic tightrope on the war in Ukraine, maintaining warm ties with Moscow whilst also stressing its support for Ukraine's territorial integrity.
(Reporting by Tamara Vaal in Astana, Writing by Felix Light in TbilisiEditing by Andrew Osborn)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
Interest rates are the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal. They can influence economic activity and inflation.
Liquefied petroleum gas (LPG) is a flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles. It is produced during natural gas processing and petroleum refining.
A central bank is a financial institution that manages a country's currency, money supply, and interest rates. It oversees the banking system and aims to maintain economic stability.
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