Many cities across Kazakhstan have witnessed unrest as liquefied petroleum gas (LPG) prices rise sharply, with thousands of protesters taking to the streets against the price of liquefied petroleum gas (LPG), which most Kazakhs use as fuel for their cars sharp rise.

The price hike comes as the country ends a gradual transition to electronic trading of LPG to end state subsidies for the fuel and let the market determine prices.

The protests continued despite the government’s announcement on Tuesday to cut fuel prices to lower levels than before the hike and President Tokayev’s dismissal of his cabinet on Wednesday. What is the main problem?

Fuel market reforms, first proposed in 2015, were implemented earlier this month. It seeks to remove national price caps on butane and propane – often referred to as “poor man’s road fuels” due to their low cost – while ensuring that local markets are well-supplied. Oil producers often face shortages of butane and propane.

When prices are fully liberalized on Saturday, January 1, the government expects supply in the domestic market to increase and help address chronic shortages.

But the measure backfired as prices almost doubled overnight to 120 tenge per liter.

Where did the protests start?

Popular anger first spread to oil-rich western Kazakhstan over the weekend. By Tuesday, the entire country was under its control.

Public anger was already running high as inflation rose to nearly 9% year-on-year – the highest level in more than five years – leading the central bank to raise interest rates to 9.75%.

An estimated 1 million people live below the poverty line in this resource-rich country of 19 million.

The protests have yet to have an impact on Kazakhstan’s oil production.

Eight police officers killed in protests

Eight police and National Guard soldiers were killed in the riots on Tuesday and Wednesday, Sputnik reported.

Demonstrators took control of the airport in Almaty, Kazakhstan’s largest city, causing flight cancellations, Reuters reported.

President Tokayev said in a televised address that foreign-trained “terrorist” gangs were seizing buildings, infrastructure and weapons and hijacking five planes, including foreign ones, at Almaty airport.

A resident of Almaty told Reuters that vodka was being distributed in Almaty’s main square. “Complete anarchy in the streets,” he added.

The Armenian Prime Minister said on Thursday that the Russian-led state security coalition of the former Soviet Union will send peacekeepers to Kazakhstan.

Complete News Source : Hindustan Times