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    Uzbekistan experiences increase in gas prices: gas stations now charging UZS 3,250 ($0.27) per cubic meter

    Uzbekistan experiences increase in gas prices: gas stations now charging UZS 3,250 ($0.27) per cubic meter

    From October 1, gas prices at automobile gas-filling compressor stations in Uzbekistan have risen to UZS 3,100-3,250 ($0.25-0.27) per cubic meter. This information has been reported by social media users and confirmed by a gas station owner in the Fergana Valley.

    Photo: Gas stations navigate pricing strategies amid tariff adjustments
    Source: Uzbekneftegaz
    The price hike comes in response to increased gas and electricity tariffs for businesses, government organizations, and other legal entities, which came into effect on October 1. The tariffs have risen from UZS 660 to UZS 1,500 ($0.049-$0.12) resulting in a 2.3-fold increase for gas and electricity for certain entities, and from UZS 1,000 to UZS 1,500 ($0.082-$0.12) resulting in a 1.5-fold increase for gas stations. Electricity tariffs have also doubled from UZS 450 to 900 ($0.037-$0.073).

    Before the tariff increase, gas was sold at CNG filling stations at an average price of UZS 2,700-2,800 ($0.22-$0.23), making the current prices 16% higher. Reports from internet users also indicate that taxi and bus fares in various regions have increased. Moreover, bus fares in Urgench have doubled from UZS 1,000 to 2,000 ($0.082-$0.16).

    Photo: Ripple effects of gas tariff increase
    Source: Reuters

    To prevent a sudden surge in prices at CNG filling stations, the government has imposed a price cap of UZS 3,250 ($0.27). Any increase beyond this limit is considered 'unreasonable' and gas stations will not be supplied with gas, as stated in a government document.

    The founder of one gas station revealed that the heads of CNG filling stations were summoned to the prosecutor's office and warned against raising prices above UZS 3,250 ($0.27). Energy Minister Zhurabek Mirzamakhmudov expressed confidence that gas stations will still be able to generate profits and recoup their investments, even with the price limit set at UZS 3,250 ($0.27) after the tariff increase.

    Photo: Price hike due to increased gas and electricity tariffs for businesses and government organizations
    Source: Reuters

    One entrepreneur shared concerns that his profit per cubic meter would decrease from UZS 440 to 110 ($0.036-$0.009) following the tariff hike. He also suggested that the lower profit margins may lead to some gas stations exiting the market, potentially increasing gasoline demand.

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    02.10.2023, 15:50   Comments (0)   1819
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