Government introduces zero export duty on petrol and increases duties on diesel fuel and ATF

Uzbekneftegaz reported that the reserves of automotive gasoline at its oil depots have increased by 2.5 times compared to last year. Abrorzhon Khudoyberganov, Deputy Chairman of the company for processing, stated at a press conference on October 27 that the company's own gas stations are fully supplied with fuel for the upcoming winter period.

As previously noted, gasoline reserves at oil depots exceed the figures from the same time last year by 2.5 times. In response to questions about preventing queues and disruptions, the deputy head of Uzbekneftegaz emphasized that the company is actively expanding its network of gas stations and increasing the volume of petroleum product sales.

Khudoyberganov informed that while 31 gas stations were operational at the beginning of the year, their total number has now reached 152. Furthermore, product sales volumes have increased five to sixfold during this period. The company's stations offer AI-92 and AI-95 gasoline, as well as various types of diesel fuel, including Euro-4 and Euro-6 standard products.

He assured that all Uzbekneftegaz stations have the necessary reserves of gasoline and diesel fuel, and no disruptions are expected. It was also noted that over the past nine to ten months, the price of gasoline at the company did not exceed 12 thousand soums. However, the company representative clarified that this information applies exclusively to the gas stations within the Uzbekneftegaz system, not to the entire national fuel market, where other major players, including private entrepreneurs, exist.

How the gas station network is expanding

According to the Deputy Chairman of Uzbekneftegaz, the growth in the number of operating gas stations is achieved through the restoration and modernization of existing facilities in various regions. The company is involved in reconstructing stations, replacing outdated fuel dispensers, and installing equipment for more accurate accounting of dispensed fuel.

It was reported that in the initial stages, partial reconstruction and dispenser replacement work was carried out in remote areas to ensure consumers receive quality fuel in the required volume. According to the company itself, about 90 new fuel dispensers have been installed at the gas stations. In Tashkent and the Tashkent region, 10 gas stations underwent modernization, where new measurement and remote control systems were implemented.

Specialists through the Uzbekneftegaz situational center have the ability to monitor fuel stocks, sales volumes, and pricing at the stations. Company employees also conduct checks on the accuracy of fuel dispensing both at oil depots and at gas stations. For the period from January to September 2026, Uzbekneftegaz produced 773.5 thousand tons of automotive gasoline, meeting the production plan at 100.2%.

Sales of Uzbekneftegaz gas stations

Previously, in November 2023, Uzbekneftegaz sold a network of 78 UNG Petro and Chinaz refinery gas stations that belonged to the Petroleum Technology Group, specifically Daniyar Kamilov, son of former Foreign Minister Abdulaziz Kamilov. After this, the network received a new name—Carvon. According to the financial reports of the state corporation, the value of these assets amounted to 453 billion soums. The deal took place without a public tender announcement or results, but the change of ownership was only known in March 2024.

In October 2026, the head of the State Property Management Agency, Sohibjon Murodov, refuted accusations of 'covert privatization'. He explained that the sale was conducted through direct negotiations involving international consultants, and the results of the deal were disclosed. Nevertheless, Murodov admitted that the information about the privatization process lacked sufficient transparency.

In the context of queue problems, restrictions on the operation of automotive gas filling compressor stations (AGNKS), which sell methane, have periodically been introduced in Uzbekistan during cold weather. This occurred due to reduced pressure in gas pipelines and the need to supply natural gas to the population and social institutions. For example, such restrictions were imposed several times during the 2025/2026 heating season.

In December 2025, one of the reasons for the restrictions was the reduction in natural gas imports from Turkmenistan due to a technical failure in the gas transportation system. According to the Ministry of Energy, the daily gas deficit reached 6 million cubic meters during that period. From January 19, 2026, methane stations were closed to private cars for two weeks, and in March, restrictions were reintroduced amid the cooling weather. When methane availability decreases, some drivers are forced to switch to gasoline, which creates additional pressure on the petroleum product market.

In July 2026, plans were presented to President Shavkat Mirziyoyev regarding the preparation of the oil and gas industry for the autumn-winter season of 2026/2027. These plans include forming a reserve of automotive gasoline amounting to 120 thousand tons for December and January, which is significantly higher than the planned reserve of 65 thousand tons the previous year. The authorities also instructed to ensure the stability of energy resource supplies, complete infrastructure repairs, and prepare relevant emergency services.

The government has extended the diesel fuel subsidy for another thirty days. Without this extension, the benefit was set to expire this week. The government announced that the relevant decree will be published on Tuesday in the 'Diário Oficial da União'.

According to government data, the continuation of the subsidy is due to the instability of international oil and fuel prices. Measures adopted by the government to curb fuel prices, including the gasoline subsidy announced at the beginning of the month, were introduced after the presidential elections, which were won by Luiz Inácio Lula da Silva.

The diesel fuel subsidy currently consists of two parts. The government emphasized that this change does not mean an increase in the subsidy; the goal is to prevent the cost from dropping to 1 Brazilian real per liter after the end of the first temporary measure.

The global benchmark Brent crude oil remains above the $100 per barrel mark due to conflicts in the Middle East. More than 25% of the diesel fuel consumed in Brazil is imported.

Despite an initial statement that there would be no immediate reduction in fuel prices for drivers, the government announced a temporary postponement of price increases for November and December. The complete abolition of fuel taxes is also being discussed, but it is expected not to happen anytime soon.

Finance Minister Enoch Godongwana, responding to questions in a recent radio interview on station 702, stated that the government intends to eventually phase out the General Fuel Levy (GFL). However, he warned that the resulting huge revenue deficit would have to be compensated by other sources of income.

Godongwana noted: 'We must find a way to phase it out. But by doing so, we will lose about 80 billion rand.' He added that the issue of closing this gap would be subject to discussion.

The Minister also stated that the funding mechanism for the Road Accident Fund (RAF) would need to be reviewed. He emphasized that simply excluding the RAF would lead to a significant reduction in fuel costs, as it includes a charge of 2 rand per liter.

Godongwana did not provide timelines for the possible abolition of fuel levies. In the long term, it may become more difficult for the government if electric vehicle sales begin to grow rapidly, as these vehicles are not subject to fuel taxes.

Fuel Price Overview

Minister of Mineral Resources and Energy Gwede Mantashe previously stated that his department is reviewing the Regulatory Accounting System used to determine the margin included in fuel prices. This process is expected to be completed by March 2027.

In total, the two main levies add more than 6 rand to the cost of every liter of petrol. Currently, the GFL is 4.10 rand per liter of petrol and 3.93 rand per liter of diesel, while the RAF levy is 2.25 rand per liter of both fuels.

During his speech announcing the medium-term budget policy last week, Godongwana announced temporary measures to reduce fuel prices for the next two months. From November 4 to December 1, the GFL will be reduced by 1.50 rand per liter of petrol and by 3.00 rand per liter of diesel. Then, from December 2 to January 5, 2027, the reduction will be 1.00 and 1.50 rand respectively.

However, this reduction will be offset by the upcoming price increase, as the latest data from the Central Energy Fund (CEF) indicates a rise of 1.16 rand per liter of petrol and 1.40 rand per liter of diesel.

Fiscal Implications

Economists had previously warned that cutting fuel taxes could have other negative consequences. Hannah Marais, South Africa's chief economist at Deloitte Africa, recently told IOL that reducing fuel taxes entails huge fiscal costs.

Marais stated: 'Such relief will likely require additional borrowing or spending cuts somewhere, while maintaining fiscal credibility and supporting sustainable public finances remains particularly important for South Africa.'

Sanisha Packirisamy, group economist at Momentum, added that covering high fuel prices through additional government borrowing risks increasing the yield on government bonds and weakening the rand, while cutting public spending in other areas carries its own socio-economic costs of growth.

Packirisamy noted: 'It is politically difficult to argue against providing assistance to burdened consumers, but repeated extensions create an unrealistic expectation that the government will absorb every external energy shock.'