Identifier
Created
Classification
Origin
08ASHGABAT562
2008-05-02 14:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: PRICES CONTINUE TO RISE - COST OF
how-toVZCZCXRO4145 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG DE RUEHAH #0562 1231452 ZNR UUUUU ZZH P 021452Z MAY 08 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 0734 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY 3722 RUEHBJ/AMEMBASSY BEIJING PRIORITY 1540 RUEHKO/AMEMBASSY TOKYO PRIORITY 1407 RUEHIT/AMCONSUL ISTANBUL PRIORITY 1976 RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS ASHGABAT 000562
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PGOV ECON EPET SOCI TX
SUBJECT: TURKMENISTAN: PRICES CONTINUE TO RISE - COST OF
GASOLINE TO DOUBLE
REF: ASHGABAT 551
UNCLAS ASHGABAT 000562
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PGOV ECON EPET SOCI TX
SUBJECT: TURKMENISTAN: PRICES CONTINUE TO RISE - COST OF
GASOLINE TO DOUBLE
REF: ASHGABAT 551
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Just a day after Turkmenistan unified its dual
currency exchange rate at 14,250 manats to the dollar (Ref A)
-- a rate which many experts here thinks inflates the manat's
real value against the dollar -- authorities seem primed once
again to increase (by nearly double) the price of gasoline.
A gas station attendant on May 2 confirmed that gasoline
prices would rise 3000 manats per liter later that day, to
approximately 6000 manats per liter. Clearly others had
heard the news, and lines at the station were long.
3. (U) Turkmenistan Airlines has also told the Embassy that
it is considering raising prices for both international and
domestic air tickets. At present, the airline has raised the
price of a roundtrip ticket to Istanbul from 4,630,000 to
5,302,000 manat and the price of a roundtrip ticket to Moscow
from 4,005,000 to 4,520,000 manat. It reportedly is selling
tickets only to Istanbul and Moscow as it considers other
price increases.
4. (SBU) One local resident told us that there are plans to
put in meters in every dwelling to measure natural gas usage,
put a limit on gas usage for every family, and charge a
competitive rate for gas above the limit. (NOTE: Currently,
residents pay little or nothing for natural gas. END NOTE.)
Other locals have told us that the price of food products
continues to rise. The death of livestock over the unusually
cold winter has depressed the supply of domestically produced
fresh meat. One of the most affordable sources of meat are
U.S. frozen chicken legs. According to residents, however,
much imported food is either extremely expensive, sold passed
its expiration date or both. We know of one family in Mary
that rations food and has little protein in its diet.
5. (SBU) COMMENT: Economic changes in Turkmenistan, along
with rising world food prices, are bound to keep inflation on
the rise. An almost 800% increase in gas prices in February
led to immediate, sharp increases in food prices at the
markets, and we expect the same thing to happen again. While
the gasoline cost increases are being pegged by many to a
government effort to gradually phase out expensive subsidies
-- something that many experts have advised -- it is taking
its toll on Turkmenistan's people, many of whom are finding
it increasingly difficult just to find the funds to get by.
END COMMENT.
CURRAN
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PGOV ECON EPET SOCI TX
SUBJECT: TURKMENISTAN: PRICES CONTINUE TO RISE - COST OF
GASOLINE TO DOUBLE
REF: ASHGABAT 551
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Just a day after Turkmenistan unified its dual
currency exchange rate at 14,250 manats to the dollar (Ref A)
-- a rate which many experts here thinks inflates the manat's
real value against the dollar -- authorities seem primed once
again to increase (by nearly double) the price of gasoline.
A gas station attendant on May 2 confirmed that gasoline
prices would rise 3000 manats per liter later that day, to
approximately 6000 manats per liter. Clearly others had
heard the news, and lines at the station were long.
3. (U) Turkmenistan Airlines has also told the Embassy that
it is considering raising prices for both international and
domestic air tickets. At present, the airline has raised the
price of a roundtrip ticket to Istanbul from 4,630,000 to
5,302,000 manat and the price of a roundtrip ticket to Moscow
from 4,005,000 to 4,520,000 manat. It reportedly is selling
tickets only to Istanbul and Moscow as it considers other
price increases.
4. (SBU) One local resident told us that there are plans to
put in meters in every dwelling to measure natural gas usage,
put a limit on gas usage for every family, and charge a
competitive rate for gas above the limit. (NOTE: Currently,
residents pay little or nothing for natural gas. END NOTE.)
Other locals have told us that the price of food products
continues to rise. The death of livestock over the unusually
cold winter has depressed the supply of domestically produced
fresh meat. One of the most affordable sources of meat are
U.S. frozen chicken legs. According to residents, however,
much imported food is either extremely expensive, sold passed
its expiration date or both. We know of one family in Mary
that rations food and has little protein in its diet.
5. (SBU) COMMENT: Economic changes in Turkmenistan, along
with rising world food prices, are bound to keep inflation on
the rise. An almost 800% increase in gas prices in February
led to immediate, sharp increases in food prices at the
markets, and we expect the same thing to happen again. While
the gasoline cost increases are being pegged by many to a
government effort to gradually phase out expensive subsidies
-- something that many experts have advised -- it is taking
its toll on Turkmenistan's people, many of whom are finding
it increasingly difficult just to find the funds to get by.
END COMMENT.
CURRAN