Natural Gas Price Hike Raises Methane and Propane Costs
Surge in Natural Gas Prices Affects Vehicle Refueling Stations in Uzbekistan
As of May 1, 2023, the cost of natural gas for vehicle refueling stations in Uzbekistan has risen significantly, from 1,800 UZS to 2,500 UZS per cubic meter—a staggering 38.9% increase. This surge has led to consumer prices for methane reaching as high as 5,200 UZS per cubic meter at certain gas stations, substantially higher than the previous range of 3,950 to 4,250 UZS observed in various regions of the country.
The primary catalyst for this price escalation is the implementation of new electricity and gas tariffs that came into effect nationwide on May 1. Originally set to roll out on April 1, the government postponed this adjustment for a month at the request of the president, aiming to provide some relief to households and businesses amidst the rising costs.
In a broader context, a government resolution passed in September 2023 had temporarily capped methane gas prices at gas stations at 3,250 UZS per cubic meter for a six-month period. As that period has now lapsed, the ceiling was modestly increased to 3,350 UZS as of April 1, with preferential pricing extended for another two months. This cap is set to rise further to 3,750 UZS per cubic meter between June 1 and July 31.
In addition to methane, the price of propane has also seen a notable increase. On April 18, one ton of propane was priced at 5.244 million UZS; however, by April 29, this figure had leaped to 6.014 million UZS, marking a 14.7% rise.
The continuous increase in fuel prices is creating challenges for consumers in Uzbekistan, prompting discussions and concerns about the economic implications for households relying on natural gas for their vehicles. The government’s phased approach to pricing adjustments reflects an attempt to balance energy demands while supporting economic stability in the face of rising costs.
