She noted that last year domestic fuel prices rose due to changes in the external market.
According to the specialist, Kyrgyzstan is completely dependent on fuel imports, and therefore fluctuations in world prices have a direct impact on domestic rates.
However, as Mambetkul kyzy added, the stability of the national currency helped mitigate the negative consequences.
“Since the beginning of this year, we have observed a decrease in prices for fuel and lubricants, but it is necessary to consider seasonal factors, as during the spring and autumn periods, when fieldwork is underway, the demand for fuel increases,” she clarified.
In her opinion, the decrease in prices at the beginning of the year was made possible thanks to the joint efforts of the Cabinet of Ministers and the National Bank. Nevertheless, the further price dynamics will largely depend on external circumstances and the situation in global markets. It is important that the regulator has all the necessary tools to smooth out sharp price fluctuations if necessary.
In addition, the head of the monetary policy department of the National Bank of the Kyrgyz Republic emphasized that the stability of the domestic currency market plays a key role in mitigating price shocks.
“In recent years, the exchange rate has remained quite flexible and stable. This stability in the currency market helps to contain the rise in prices for imported goods,” she concluded.
