People in Kazakhstan have united to protest against the steep increase in the price of LPG (Liquid Petroleum Gas) across many cities in the country. LPG is used as car fuel in Kazakhstan.
The country ended a gradual transition finally to electric trading for LPG to stop state subsidies for fuel and the market was allowed to dictate prices which explains the price rise of LPG. Kassym-Jomart Tokayev, the President of Kazakhstan has sacked his cabinet on Wednesday and the government also tried to assure the citizens that the prices will be lowered but the protests have not yet stopped and are creating havoc all over the country.
The subject of fuel market reform was first brought upon in 2015 and it came into effect from January 2022. It was intended to eliminate the state price caps for Butane and Propane which are often known as the poor man’s road fuels because of their low cost. The subsidies earlier had been the cause of the shortages caused in the nation which has otherwise abundant of oil supply and is known as the major oil producer.
The government did not expect the decision to liberalize the prices fully to backfire. The government expected the supplies in the domestic market to rise significantly and will also help overcome the chronic shortage the country was facing. But the prices have nearly doubled overnight rising up to 120 tenges per liter.
The mass protests began first in the western part of Kazakhstan, which is an oil-rich area during the weekend. By Tuesday, the protests took over the entire country under its influence. The public was already unhappy with the inflation that had been rising up to nine percent, an all-time high in the last five years. This led to the interest rates of the central bank rising to 9.5 percent.
There are around a million people who are living under the poverty line in a country that has around 19 million people in total. But the protests have not yet dented the country’s oil supply.
8 police and national guard troops have been killed in the unrest caused by the protests so far, as per the reports. The protestors have taken control over the airport in Kazakhstan’s biggest city, Almaty which has led to the cancellation of many flights. The President has issued a statement stating that the terrorist gangs are behind the seizing of buildings and weapons, he also reported that five aircraft have been taken by them as well.
The US has been following the situation closely according to the reports. There is chaos and complete anarchy on the streets of Kazakhstan which has forced the government to declare a nationwide state of emergency. This declaration gives the President the power to also impose a curfew, ban the protests, and restrict internet usage across the country.
