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4 November 2011
Kyrgyz insurance requirement could cause crisis, oil trader says
BISHKEK – An effort by the Kyrgyz Interior Ministry to make all oil trucks carry insurance could cause a crisis in Kyrgyzstan’s fuel and lubricating oil supply, Zhumakadyr Akeneyev, president of the Association of Oil Traders of Kyrgyzstan, said November 2.
Kyrgyzstan imports 1m tonnes of fuel and lubricating oils annually from Russia, he said. The Interior Ministry’s new requirement that oil truck owners buy an insurance policy costing 120,000 KGS (US $2,600) per year for each truck has caused 60% of fuel-and-oil transport operators to refuse to work. A continued standoff could cause an oil crisis, he warned.
“If this order remains in effect, then besides a shortage of fuel and lubricating oils, we’ll see prices go up on oil products,” he warned.
The association has gone to court to seek an injunction against the ministry’s order. It also intends to have parliament raise the issue.
“We’re asking the ministry to postpone the order for two to three months and ... figure out an acceptable level for insurance premiums,” Akeneyev said.
The Interior Ministry’s press office told Central Asia Online oil trucks need to carry insurance because accidents occur that damage private property.
