Coal prices in Uzbekistan double after end of state price controls

Since June 1, coal has been removed from the list of strategically important socially significant goods subject to regulated prices. Prices are now determined by market supply and demand, with sales conducted through commodity exchange trading. The shift to market-based pricing has been followed by a sharp increase in coal prices.

The decision to abolish price controls came after President Shavkat Mirziyoyev reviewed a presentation by Minister of Mining Industry and Geology Bobir Islamov on May 26. At the time, the presidential press service said administrative price regulation had undermined producers' financial sustainability and limited their ability to attract investment and expand production.

According to the statement, the new pricing mechanism is intended to create an open and competitive market, ensure equal conditions for all participants, and encourage producers to increase output and improve product quality.

Thermal power plants and other major consumers will be able to purchase coal at the average commodity exchange price for the relevant period.

Despite the liberalization of prices, coal production fell significantly during the first five months of 2026. Output totaled 1.6 million tonnes, down 36% from 2.5 million tonnes recorded during the same period of 2025. Compared with the first five months of 2024, when production reached 1.9 million tonnes, the figure declined by 15.8%.

The Ministry of Mining Industry and Geology said the drop does not reflect a downturn in the sector but rather high inventory levels. As of January 1, 2026, Uzbekcoal held 2.3 million tonnes of coal in storage.

The ministry said production levels were adjusted to reflect actual domestic demand for coal and existing stockpiles. By June 1, inventories had fallen to 1.2 million tonnes.

According to the ministry, coal industry enterprises produced 3.3 million tonnes during the first half of 2026, fully meeting the planned target and exceeding the same period last year by 0.5%.

The ministry also noted that 16 private producers mined and supplied 1.416 million tonnes of coal to consumers in 2025. This year, that figure is expected to increase by more than 80% to 2.554 million tonnes.