AI-80 gasoline prices surge by around 40% in Uzbekistan despite global oil price drop

According to exchange data, AI-80 gasoline prices have risen by 37.5% compared to the same period last year, when the price was 7.29 million UZS per ton. Despite this sharp increase, official figures show that both domestic production and imports of gasoline have grown. From January to August 2024, Uzbekistan produced 896,000 tons of gasoline, a slight increase from the 892,000 tons produced in the same period in 2023. Additionally, in the first eight months of 2024, the country imported $1.42 billion worth of crude oil and petroleum products, marking a 29.5% rise.

However, the supply of AI-80 gasoline on the exchange has decreased, with only 1,768 tons available on October 16, compared to 3,180 tons a year ago. This reduction in supply has been a key factor driving up prices.

A representative from a private network of gas stations explained to Kun.uz that they are currently purchasing AI-80 gasoline from the exchange at 7,900 UZS per liter. With taxes, transportation, and storage costs, the total price reaches up to 8,500 UZS per liter, contributing to the increase in retail prices.

The situation has been exacerbated by the fact that in 2020, the government deregulated the retail price of AI-80 gasoline, allowing it to be sold only through exchange trading. Additionally, the recent ban on importing K2-category gasoline, which includes AI-80, has further limited supply.

There are concerns that some private gas stations may be receiving exclusive privileges. The UNG Petro gas station network, which was transferred to the private company "Petroleum Technology Group" earlier this year, continues to sell AI-80 gasoline at a significantly lower price of 6,900 UZS per liter. This discrepancy has led to speculation that UNG Petro may still be benefiting from preferential treatment, potentially bypassing the exchange and sourcing gasoline directly from refineries.

While the prices in Uzbekistan rise, neighboring countries offer significantly cheaper fuel. According to Globalpetrolprices.com, as of October 14, high-quality gasoline in Turkmenistan costs 5,480 UZS per liter, while in Kazakhstan, it is 6,420 UZS. In Russia, the price is 7,760 UZS, and in Azerbaijan, it stands at 8,280 UZS. By comparison, gasoline in Uzbekistan is priced at 12,590 UZS per liter, which is even higher than in the United States, where it is around 11,880 UZS.

Uzbekistan has been increasing fuel imports in recent years, particularly from Russia, to address domestic shortages. However, imports from neighboring Turkmenistan and Kazakhstan remain minimal, despite their lower prices and geographical proximity.