Uzbekistan to Deregulate Coal Prices
Uzbekistan to Abandon State Regulation of Coal Prices
Uzbekistan is planning to abolish state regulation of coal prices, as outlined in a recent resolution by the Cabinet of Ministers on April 16. This decision comes in conjunction with the increase in tariffs for electricity and gas.
Currently, coal that is sold directly to the population, budgetary organizations, and thermal power plants falls under the category of socially important goods, with its price regulated by the state. Wholesale and retail prices for coal are typically reviewed and approved by the Interdepartmental Commission on Tariffs under the Cabinet of Ministers at least once a year, usually before June 1.
When referring to retail prices, this pertains to the price of coal products that are approved by an interdepartmental commission and sold to the population through the coal warehouses of the “Kumir ta’minot” company.
The Ministry of Energy, in collaboration with other relevant departments, has been tasked with presenting proposals within a month on establishing wholesale and retail prices “based on market principles.”
In 2023, coal production in Uzbekistan saw a 15.5% increase compared to the previous year, reaching a volume of 6.19 million tons. Additionally, imports of coal, coke, and briquettes also rose to $204.4 million, marking a 67.8% increase. Coal supplies from Kazakhstan surged by 82.3%, with an increase of 1.4 million tons to 3.1 million tons. Furthermore, coal imports from Kyrgyzstan doubled over the course of 10 months in the previous year, reaching nearly 900 thousand tons.
This shift towards market-based pricing for coal in Uzbekistan reflects the country’s commitment to creating a more competitive and efficient energy sector.
