Tashkent, Uzbekistan (UzDaily.uz) — President of Uzbekistan Shavkat Mirziyoyev signed a resolution on 12 September to reform the system for supplying liquefied petroleum gas (LPG) to the population and gradually introduce market mechanisms, the Ministry of Justice reported.
The document provides for measures outlined on 7 September during a presentation on the reorganization of the liquefied gas sector. The reforms are aimed at increasing the sector’s financial transparency and gradually transitioning it to market-based principles.
A subsidiary company, LPG-Trade, will be established under Hududgaztaminot JSC. Its main task will be to supply LPG to the population.
The resolution also provides for the phased transition of wholesale LPG sales to exchange trading. This will apply both to fuel produced in Uzbekistan and imported volumes.
At the same time, suppliers will retain the option of selling LPG at retail through their own distribution points. Companies supplying propane to households will be able to purchase it directly on the exchange or import it from abroad.
The sector will gradually phase out cross-subsidization of LPG supplies. Instead, targeted financial assistance will be introduced for vulnerable groups of the population.
The private sector will also be gradually involved in supplying households with LPG.
The measure is expected to help create a competitive environment in the sector.