In September, the liquefied gas market in Uzbekistan underwent significant changes in pricing policy after the restriction on the growth of exchange prices was lifted. Previously, from November 2024 to mid-September, the price increase of liquefied gas on the exchange was limited by a maximum spread, which prevented the sales price from exceeding the seller's initial price by more than 20%.
On September 12, the president signed a decree that provides for the phased introduction of market mechanisms into the liquefied gas supply system. According to this document, liquefied gas produced in Uzbekistan and imported from abroad, besides volumes sold through producers' and importers' own fueling stations, must be sold through the exchange. Simultaneously, the restriction on the growth of the exchange price relative to the goods listing price was lifted, although a specific deadline for this norm to come into force was not specified; the document itself came into effect on September 15.
After the spread was abolished, the exchange price of propane rose significantly on September 17, increasing by more than 60%: from 7.412 million to 11.904 million soms per ton. This sharp rise caused concerns among consumers about possible increases in prices at automotive gas stations. However, a source familiar with the market reported that such a jump was not observed in most regions by the end of September. According to him, in the southern regions, propane cost about 11 thousand soms per liter, and in some areas—9000–10000 soms, while in the central and eastern regions, the price remained within 8000–9000 soms.
The interlocutor explained this by stating that before the restriction was lifted, part of the real costs of buyers was not taken into account in the exchange price. He claimed that some market participants paid sellers an additional sum, known as the 'cap', outside the exchange, and then included these costs in the retail price. After the restriction was lifted, this component began to be reflected directly in the exchange price, rather than being formed through off-exchange payments.
Initially, it was assumed that the transition to a more market-oriented pricing would make imports more attractive for businesses, as a sufficient gap between the domestic and import price would make it more profitable for suppliers to import more liquefied gas. The increase in import supply, in turn, was expected to strengthen competition and help stabilize prices. Nevertheless, after the September 17 surge, the price of propane began to gradually decrease, and this decline continued for seven consecutive trading days.
However, the situation changed on September 30. Economist Otabek Bakirov noted that the average price of propane rose by 371.4 thousand soms, reaching 11.364 million soms per ton. Concurrently, the sales volume decreased to 1018 tons, which is almost 25% less than the previous days' volumes and approximately 70% less than the trades on September 23.
Bakirov also drew attention to the decrease in supply. Specifically, on September 30, divisions of the major producer 'Uzbekneftegaz' did not list liquefied gas on the exchange. Supply from 'Lukoil' amounted to only about 50 tons. Furthermore, the absence of 'Uzbekneftegaz' products in the last days of the month corresponded to the company's previously published schedule. On September 3, 'Uzbekneftegaz' posted its approved supply schedule for September on the exchange website, planning to sell 4500 tons for the month. According to this plan, the last batches were supposed to be listed on September 25, and supplies for September 28, 29, and 30 were not planned.
The schedule also detailed the distribution of volumes: 1500 tons went to Mubarek Gas Processing Plant, 1200 tons to Shurtan Oil and Gas Production Department, and 940 tons to Gazliy Gas Production Department. Additionally, 560 tons were planned to be listed for Shurtan Production Department under a commission agreement with Uz-Gas Energy, and 300 tons for Mubarek GPP under an agreement with Sanoat energetika guruhi. According to 'Lukoil's' schedule, approved by a letter dated August 28, the company intended to sell 1050 tons of liquefied gas in September (50 tons daily).
In response to the 'Gazeta's' request, the Ministry of Energy clarified that the liberalization of exchange trade does not imply an increase in the volume of domestic liquefied gas production entering the market. The Ministry of Energy stated that the main goal of lifting existing restrictions is not to increase the volume of domestic resources in trading, but to expand entrepreneurs' opportunities for imports, which should lead to an increase in import supplies.
The department emphasized that priority for locally produced liquefied gas remains ensuring the population's supply at reduced tariffs. The Ministry indicated that for guaranteed and continuous supply of citizens with this resource, increasing the volume of domestic production offered on open exchange trading is not advisable.
The president's decree also enshrines the priority of supplies to the population. The new system, which will take effect on November 1, assumes that the company LPG-Trade, established under 'Hududgaztaimonat', will purchase gas through the exchange and supply it to residents. Private entrepreneurs will also have the opportunity to supply the population with liquefied gas, including imports.
The government was instructed to negotiate within a month with Lukoil Overseas Supply and Trading Ltd regarding the sale of the entire volume of liquefied gas produced at this company's facilities through a special commodity exchange platform, where the gas will be sold at preferential subsidized prices for the population.
According to the National Statistical Committee, propane prices rose by 5.8% in August and by 41.4% over the year. In March, the Competition Committee identified legislative violations by 31 propane importers, including restricting supply, inflating starting prices, and selling outside the exchange. Measures were taken against 12 companies for anti-competitive behavior, and violators were fined 28.9 billion soms, with another 34.1 billion soms in unjustified funds to be transferred to the budget.
The Committee linked this situation to market transformation: the share of imported propane in exchange trades sharply increased from 20% to 90%, while local products were increasingly directed to social needs and the population. As the department asserts, it is the imported gas that has been determining the average exchange price.