Natural gas tariff increase drives up methane and propane prices

As of May 1, the price of natural gas supplied to vehicle refueling stations in Uzbekistan has increased from 1,800 UZS to 2,500 UZS per cubic meter – a 38.9% jump. As a result, methane prices for consumers have risen to as high as 5,200 UZS per cubic meter at certain gas filling stations. Meanwhile, the price of propane has also surged by nearly 15% in the last ten days on the commodity exchange.

According to reports circulating on social media, many gas stations across Uzbekistan have increased methane prices to 5,200 UZS per cubic meter, a significant rise from the previous range of 3,950 to 4,250 UZS observed in various regions.

The main driver of this price spike is the implementation of new electricity and gas tariffs introduced nationwide on May 1. Initially scheduled for April 1, the tariff adjustment was postponed by one month following a directive from the president, who ordered the government to delay the price increases to support households and businesses.

For context, a government resolution adopted in September 2023 had capped methane gas prices at gas stations at 3,250 UZS per cubic meter for a six-month period. Upon the expiration of this period, the ceiling was slightly raised to 3,350 UZS from April 1, with the preferential pricing extended by two more months. From June 1 to July 31, the maximum allowable price will increase to 3,750 UZS per cubic meter.

Additionally, the price of propane has experienced a notable rise. On April 18, one ton of propane was selling for 5.244 million UZS on the exchange, but by April 29, the price had jumped to 6.014 million UZS – a 14.7% increase.

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