Uzbekistan imposes price cap on propane to curb inflation

The propane price has surged nearly double in recent months, with some reports indicating an increase of 91.4% between June 5 and November 5, 2024. The rise in fuel costs has been particularly noticeable, affecting both industrial and domestic users.

On November 5, the Competition Committee issued an order, establishing a 20% price spread for liquefied gas starting from Wednesday, November 6. This means that propane, when sold at the exchange, cannot exceed the initial price by more than 20%.

The impact of this regulation was seen almost immediately. On November 6, propane prices fell substantially, with the average cost per ton dropping from over 12 million UZS to around 8.9 million UZS. This sharp decline followed the introduction of the new price control measure.

The decision to impose this price ceiling is aimed at controlling inflationary pressures and protecting consumers from excessive costs in a volatile market. Market participants have noted that such price controls are essential given the dramatic fluctuations seen in the past few months.