"Energy sector subsidies to end by 2028" – Jamshid Kuchkarov

Today, December 18, Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov spoke during a Senate plenary session. He provided information on the law "On the State Budget of the Republic of Uzbekistan for 2025." Senators asked him why subsidies for the energy sector continue despite price increases.

"Why are there still subsidies from the budget, even though tariffs have increased? First, our tariffs have not yet reached a cost-recovery level. Second, we are importing a certain portion of gas.

Therefore, we have no choice but to bring tariffs to a fully cost-recovering level. From this perspective, while tariffs have increased this year, the Cabinet of Ministers has approved proposals to further increase tariffs starting from April 1 next year. God willing, starting April 1 next year, [electricity and gas] tariffs will rise again.

Speaking of subsidies in general, the budget draft for next year includes 7.5 trillion UZS in subsidies for gas and electricity, down from 12 trillion UZS this year. In other words, they are gradually decreasing," Kuchkarov stated.

He added that subsidies would continue in 2025 and 2026 and would "sharply decrease, God willing," in 2027. Starting from 2028, the energy sector will no longer receive subsidies, the government official announced.

For reference, the total planned amount of subsidies from the state budget in 2025 is expected to be 28.3 trillion UZS. Of this, 12.3 trillion UZS will be allocated to the energy sector, including 7 trillion UZS specifically to cover the gap between the cost of purchasing and selling gas.