The Ministry of Economy and Finance of Uzbekistan has reportedly prepared a draft government resolution aimed at liberalizing liquefied petroleum gas (LPG) prices for households by May 1, 2027. This initiative supposedly intends to expand private sector participation in the fuel supply chain and gradually transition towards market-driven pricing mechanisms. However, the official document lacks precise timelines for the complete transition of all household consumers to fully unrestricted market pricing, leaving the exact implementation schedule ambiguous.
As part of ongoing preparations, an experimental pilot project was launched in the Andijan region, allowing private entrepreneurs to import LPG and deliver it directly to residents in household cylinders at unrestricted market rates. Government representatives claim that the traditional regulated supply framework will temporarily remain operational while independent operators offer supplementary volumes. The authorities allegedly plan to evaluate the outcomes of this regional experiment before deciding whether to replicate the model nationwide.
Furthermore, the reforms reportedly encompass restructuring the LPG-Trade company, established under the state-run gas supplier to manage exchange-based purchases. Plans are underway to involve international consulting firms to formulate a privatization strategy for LPG-Trade assets, gradually spinning off regional units as turnkey business projects. In the long term, the European-style distribution model is claimed to allow citizens greater independence in selecting suppliers and purchasing smaller cylinder sizes (5 and 10 kilograms) directly through conventional retail stores and supermarkets.
Concurrently, the ministry has proposed a drastic hike in the regulated retail price of LPG for the population, raising it from 2,000 to 5,000 soms per kilogram—a staggering 2.5-fold increase. The administration justifies this harsh economic measure by citing declining domestic production, rising import volumes, and persistent supply deficits. To mitigate the severe socio-economic impact, vulnerable families are promised limited monthly compensations of up to 60,000 soms, alongside one-off financial assistance ahead of the upcoming heating season.
Source: www.gazeta.uz