From fixed rates to free markets: Uzbekistan to liberalize coal prices and target 11 million tons of output this year

The presentation noted that administratively fixed coal prices have been weighing on producers' financial stability and limiting their ability to attract new investment. To address this, officials proposed removing coal from the list of socially significant strategic goods subject to state price regulation. Under the new approach, prices would be determined by supply and demand, with coal sold to consumers through exchange trading.

The rationale behind the shift is to foster open competition in the sector, level the playing field for all participants, and give producers a tangible incentive to increase output and improve quality. Thermal power plants and large consumers would also be able to purchase coal through a request-for-offer mechanism at average exchange prices for the reporting period.

Output on the rise

The presentation also highlighted a marked increase in coal production in recent years. During the first 25 years of independence, annual output averaged between 3.1 million and 4 million tons. Over the past nine years, that figure has climbed to 10 million tons, and production is planned to reach 11 million tons ahead of the coming autumn-winter season.

The number of private coal producers has grown to 18, and private investment in the sector totaled $117.2 million between 2023 and 2025. President Mirziyoyev approved the proposals and issued relevant instructions to the responsible officials.

Broader business reforms also on the agenda

Separately, on 26 May, Mirziyoyev reviewed a presentation on creating more favorable economic and administrative conditions for small businesses. Among the proposals was a measure to raise the threshold for eligibility under the simplified tax system from UZS 1 billion to UZS 5 billion.