Private sector may take over liquefied gas supply for nearly half of Uzbekistan's population

During a meeting on August 12, President Mirziyoyev discussed the possibility of involving private operators in the distribution of liquefied gas to the population. He instructed the relevant authorities to examine this option and propose appropriate measures.

In February, a presentation on measures to ensure Uzbekistan's energy security was given to the president. Among the proposals was the transfer of the function of delivering liquefied gas (propane) to private operators in at least five districts by October 1.

The proposals also include reforms to gas and electricity tariffs, the introduction of social norms, renegotiation of contracts for the purchase of $49 billion worth of electricity, and attracting investors to the distribution and sale of electricity in the city of Samarkand.

The 2024 State Program includes the abolition of the monopoly on the delivery of natural and liquefied gas to consumers and the involvement of the private sector in managing low-pressure gas distribution networks.

As of May 24, 4.26 million households and over 81,000 enterprises in Uzbekistan receive natural gas. Liquefied gas is supplied to 3.73 million consumers (46.7% of the population) and 2,917 wholesale consumers. From May 1, the tariff for liquefied gas for the population increased from 1,120 UZS per kilogram to 1,600 UZS and will rise to 2,000 UZS by April 1, 2025.

At the beginning of August, a sharp increase was reported in the price of propane. According to the Uzbekistan Commodity Exchange (UzEx), the price of liquefied gas (propane) increased from 5.2 million UZS per ton on June 1 to 6.02 million UZS per ton on July 1, and to 7 million UZS by July 31, representing a 25% increase for the month and a 44% increase over two months.

The Competition Promotion and Consumer Protection Committee is currently investigating the situation. The committee also noted that the price increase had been anticipated and that the regulator (the Ministry of Energy) was informed on July 15.

As of the close of trading on August 11, the price of one ton of propane had risen to 7.85 million UZS.