State regulation of coal prices may be abolished

Uzbekistan is planning to transition to market-based coal pricing. This is provided for by the Cabinet of Ministers' resolution on the introduction of new tariffs for energy resources.

According to the resolution, relevant ministries and agencies are tasked to develop, within a one-month period, proposals for forming wholesale and retail coal prices based on market principles.

Currently, coal supplied to the population, budgetary organizations, and thermal power plants on the basis of direct contracts is considered a socially significant commodity, and its price is regulated by the state.

Wholesale and retail coal prices are reviewed and approved by the interdepartmental tariff commission at the Cabinet of Ministers no less than once a year (by June 1st). Coal at the established retail price is sold to the population through the coal warehouses of JSC "Kumir Ta'minot."

According to the Statistics Agency, in 2023, coal production in Uzbekistan reached 6.2 million tons, which is 15.5% more than in 2022. In 2024, coal production is planned to be increased by another 22%.

Last year, coal was also imported for the amount of $204 million, which is 67.8% more than the previous year. Specifically, in 2023, coal imports from Kazakhstan increased by 82.3% to 3.1 million tons.