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Paradoxes in govt decision main reason behind hike of fuel price: Oil Union

By Farhad Naibkhel-KABUL: General Union of Oil and Gas Companies of Afghanistan (GUGCA) on Thursday termed incoherence in government decision main factor behind increasing of fuel price in the market throughout the country.

“Number of government organs ban import of fuel 80, but some other say the issue is under discussion in minister council, so this complicated answers caused to the traders not import fuel to the market,” said Head of GUGCA Azraksh Hafezi.

He said that complicated decision of government caused shortage of fuel and hike of price in the market.

“The GUGCA and traders request from government to let them to import standard fuel and prevent increasing of prices in the country,” he added.

He said that in some cases fuel with low quality without filtering imports to the country, but the government adopt limitation before importing of standard fuel.

He insisted that the government must take on hand a clear strategy for importing of fuel and implemented for one decade in order to keep balances in the aspect.

He elaborated that since 2002 around $3.7 billion investment has been taken place in fuel importation in the country, thus it is required of government to support this investment, not create barriers ahead.

GUGCA will support government healthy policies, so the government must have balance in open bedding programs and pave the ground equally for participation of all competitors, he noted.

Hafizi said that Turkmenistan due to their internal need decreased purchasing of gas to Afghanistan from 700 tons to 400 tons, which this issue negatively impact over prices in market in the country.

He said that different technical issues, such as transit can be another challenge behind hike of gas price.

Afghan traders will struggle to accept loses but keep balance in gas price across the country, he mentioned.

He said that strategic stacks have no enough capacity in the country even it is not fit for one season, therefore it is required of government to increase the capacity of strategy stacks for gas inside the country.

He also termed lack of ground for fuel and gas traders, as well as lack of government support from this sector another challenge ahead and urged government to take positive steps in this regard.

Afghanistan National Petroleum Head Walid Tamim called GUGCA and traders claims regarding hike of fuel and gas price baseless.

He said that banning of fuel-80 is not a new issue, it was banned temporary (six months allowed, six months banned) two years ago.

Now traders seeking pretext, if they don’t have the ability to import fuel, government itself will start importation of fuel to the market in order to control fuel price.

No fuel price has been increased in world market as well as decreasing of purchase gas by Turkmenistan never impact over prices, he asserted.

He said that there is a special cluster, who struggle to increase and fix prices in the market.

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