How Utility Tariffs Impact Inflation: May 2025 Review
According to official data from the Bureau of National Statistics, annual inflation experienced moderate growth in May 2025, driven primarily by:
- Seasonal increases in food product prices;
- Price growth in paid consumer services.
Why Are Service Prices Rising?
This price growth is tied to utility tariff adjustments executed under the new tariff policy, which aims to:
- Modernize aging utility infrastructure;
- Accommodate rising resource costs (electricity, coal, and fuel);
- Increase wages for personnel working at Natural Monopoly Entities (NMEs).
What Is the Total Impact on Inflation?
- Since the beginning of 2025, utility tariff adjustments have contributed 0.4 percentage points (p.p.) to overall inflation.
- The total year-end impact is planned to be capped at 0.89 p.p. by the close of the year.
What Lies Ahead?
Tariff changes are expected to remain balanced and strictly controlled to preserve overall price stability and minimize financial strain on consumers.
Astana: Oil Transportation Tariffs Discussed
On April 18, 2025, public hearings were held regarding the application submitted by JSC KazTransOil for simplified tariff approval covering operator activities for unified oil routing via Kazakhstan's pipeline network for the domestic market.
The event was organized by the Committee for Regulation of Natural Monopolies (CREM) under the Ministry of National Economy of the Republic of Kazakhstan, chaired by Nusharuan Lesbekuly, Head of the Oil and Gas Transportation Regulation Division.
Participants in the hearings included representatives from the Ministry of Energy, executive leadership from JSC KazTransOil, members of the media, and key industry stakeholders. Amirzhan Ospanov, Deputy Director General for Economics and Finance at JSC KazTransOil, presented the core report.
Note: The proposed tariff schedule presented remains preliminary; CREM will issue its final regulatory decision following a comprehensive, detailed review.
