Fuel prices soar in Uzbekistan as transparency concerns mount

The latest price jump followed the removal of excise tax exemptions on January 1, which had already pushed prices from UZS 6,050 to UZS 6,800. Despite the substantial increase, authorities have yet to provide an official explanation. The lack of clarity has prompted criticism from economists and the public alike.

According to Uzbekneftegaz, the state-owned company managing the Bukhara Oil Refinery that produces Ai-80 gasoline, all petroleum products are now exclusively sold through the exchange market. A statement released on December 29 confirmed that this measure aims to ensure fair competition.

"Starting January 1, 2025, all petroleum products produced by the Bukhara Oil Refinery, including gasoline, will be sold solely through the exchange market. Measures have been taken to stabilize gasoline supply and meet public demand," the statement read.

Economist Otabek Bakirov noted that Carvon, which was privatized a year ago, may have continued to source fuel directly at discounted prices, bypassing the exchange. He suggested that the gasoline currently sold at UZS 8,150 per liter might still be from discounted reserves obtained under the previous system.

"It’s peculiar that the exchange has yet to conduct any trading sessions in 2025, with the first auction scheduled for January 3. This means the fuel currently sold at Carvon stations originates from last year’s stock, acquired directly at lower prices," Bakirov stated, urging regulatory authorities to address the issue.

Carvon was privatized in early 2024, but the terms of the process remain unclear. The company, which operates approximately 70 fuel stations nationwide, was acquired by Petroleum Technology Group, owned by Doniyor Komilov, the son of the former foreign minister, Abdulaziz Komilov. Shortly afterward, the Chinaz Oil Refinery was also transferred to the same group.

Neither Uzbekneftegaz, the State Assets Management Agency, nor the Competition Committee has provided details on the privatization, including sale terms, pricing, or the specific conditions under which the assets were transferred.

The privatization of Carvon and the Chinaz refinery has sparked public outcry and demands for transparency. Media reports first highlighted the ownership transfer in March 2024, but official explanations have yet to be issued. Critics argue that the opaque nature of these deals undermines public trust in the government’s commitment to fair economic practices.