“I believe that AI-80 gasoline will even cost less than 4,000 soums” – Deputy Chairman of Uzbekneftegaz

In an online interview with Kun.uz, Ulugbek Ashurov, Deputy Chairman of the Board of Uzbekneftegaz JSC, commented on a number of issues that have caused heated debates recently.

During the interview, it was revealed that Uzbekneftegaz proposed to increase the excise tax on imported gasoline AI-80, AI-91 and AI-92 from 5% to 20%.

According to the presidential decree, state regulation of retail prices for AI-80 gasoline and diesel fuel has recently been abolished. Even though this applies only to AI-80 gasoline and diesel fuel, this measure has been warmly welcomed by the general public. But raising excise tax rates on imported oil products is referred as turning back, isn’t it?

I don’t think so. Why? We consider the United States to be the most developed country in the market. If there is an economic war with China, they adopt various mechanisms and methods to support their producers. Additional certifications are made, additional fees are added.

Today, people say that the networks under Uzbekneftegaz is afraid of competition. It is not correct, because we have our position. We supply oil products to the stock exchange to maintain the price in the market. Due to the fact that Uzbekneftegaz set a price of 4,000 soums, the price of other gasoline brands fell sharply.

AI-92 costs 7,200 soums at other gas stations. But we have reduced costs considerably by increasing management efficiency and reducing logistics costs.

Tomorrow the price will not halt at 4,000 soums, I am sure that the prices will fall even lower. The raw material conjuncture has been very good in order to prevent price fluctuations. In late April and early May, when the price of Brent was $22-25, Uzbekneftegaz imported more than 200,000 tons of raw materials. At present, our plants and oil depots have about 300,000 tons of finished products. The cost of these finished products is relatively low, because we produced it at the expense of cheap raw materials.

By the end of the year, whether the price of oil rises or the situation changes – we will try to maintain the price.

It should be noted that oil and gas companies, some oil refineries are major taxpayers. An average of 1,000 soums of tax was added to a price of 4,000 soums. This, in turn, affects budget payments.

-The transition to a free market in the oil and gas industry is being carried out gradually. In a free market environment, should the consumer have a choice? Whose product is cheaper and qualitative, should he choose by himself? If Uzbekistan sells both domestically produced oil products and imported gasoline, and there is competition, won’t ordinary people win? If the domestic market is artificially protected in such a way, what will be its viability?

We are the first supporter of creating a competitive environment in the market. We cannot say that it is artificial, as there would have been no problem if everyone had worked at the same level, unless the issues of stopping imports and export support by other countries had been raised. But competition has grown as other countries have backed their producers. We have proposed this to correct it.

This is a proposal, of course. It will be considered. A comprehensive calculation will be made, and then it will be decided.

Allegedly, a number of other gasoline brands is expected to become cheaper in the future. What innovations are expected to be made that will be of benefit for consumers?

Now on social networks people say that the price of AI-91 gasoline is high. I have personally dealt with this issue, we are working to reduce the price. Next week, the issue of revising the price of AI-91 gasoline is on the agenda.

We will lower the price set by the stock exchange. Similarly, we will reconsider diesel fuel prices to the possible maximum extent.

First of all, price formation is not carried out by Uzbekneftegaz. The price is formed on the stock exchange based on supply and demand. However, as Uzbekneftegaz is a large producer, it may contribute to this demand and supply. So, we will first of all make efforts to deliver cheap and high-quality oil products.

It is often stated on social networks that the quality of gasoline and diesel fuel produced by Uzbekneftegaz is low. I think the idea of low quality is wrong. Because at each of our oil depots, gasoline and diesel fuel is tested by modern laboratories.

If a consumer has doubts about the quality of gasoline, how can he quickly inform you about it? Are there any Telegram-bots or hotlines?

Both hotline (71 200-01-24) and Telegram-bot are available. When a suspicious situation arises, we promptly send the laboratory to the site and, if necessary, investigate the matter on the spot together with the same consumer and draw a conclusion simultaneously.