Why a niche fuel market reform triggered major Kazakh protests

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Kazakhstan\u0027s slow-burning government reform of a niche market for car fuels brutally backfired this week, triggering the biggest public protests in years as demonstrators accused authorities of stealing from the poor. Kazakhstan declared emergencies in the capital and elsewhere on Wednesday after demonstra

Kazakhstan's slow-burning government reform of a niche market for car fuels brutally backfired this week, triggering the biggest public protests in years as demonstrators accused authorities of stealing from the poor.

The protests were sparked by a fuel market reform first broached in 2015 that came into effect at the start of the month that sought to remove state price caps for butane and propane - often referred to as 'road fuels for the poor' due to their low cost - while making sure the local market was well supplied.

When prices were fully liberalised on Jan. 1 the government expectations were that supplies to the domestic market would rise and help address the chronic shortages.Regions such as oil-rich Mangistau, where protests started, rely on butane and propane for refuelling as many as 90 per cent of vehicles.

 

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