Antimonopoly Committee considers raising the excise tax on import of petroleum products inappropriate

The Antimonopoly Committee of Uzbekistan commented on the proposal of JSC Uzbekneftegaz to increase the excise tax on gasoline imports from 5% to 20% in order to support local oil refineries.

The committee indicated that until 2020, a number of benefits and preferences were applied for the oil refineries of Uzbekneftegaz JSC. In particular, the conditions specified in the Presidential Decree of November 14, 2017, No. PP-3386.

In Uzbekistan, equal conditions have been created for enterprises engaged in the production, import and sale of petroleum products, the committee notes. So, considered to be monopolists in the market, the Bukhara and Fergana refineries have been exempted from the restrictions on pricing since May 2020 – prices are formed on the basis of supply and demand at exchange trading.

“The proposal of JSC Uzbekneftegaz submitted to the Ministry of Energy to increase the excise tax on imported petroleum products is not economically justified,” the statement emphasizes. “Based on that from the point of view of ensuring healthy competition in the market and taking into account the interests of consumers, the Antimonopoly Committee considers the proposal of JSC Uzbekneftegaz to increase excise tax inappropriate.”