Proposals to reform the liquefied gas supply system for the population reviewed
Uzbekistan
President Shavkat Mirziyoyev reviewed a presentation on proposals to reform the system for supplying liquefied gas to the population.
Liquefied gas plays a vital role in providing energy resources to residents in areas not covered by the natural gas pipeline network. Consequently, the timely, safe, and stable delivery of liquefied gas is directly linked to people's daily lives, the operation of social facilities, and living conditions in the regions.
During the presentation, an analysis was conducted regarding the balance of resources and distribution of liquefied gas, the current supply system, pricing and subsidy issues, and the impact of proposed measures on the population.
It was noted that approximately 3.8 million consumers and nearly 2,000 social facilities across the republic rely on liquefied gas supplies. This year, the supply of 604.8 thousand tons of liquefied gas is planned to meet the needs of the population and social facilities.
It was pointed out that several problems persist within the current system. In some regions, liquefied gas fails to reach consumers on schedule. As a result, residents are forced to meet additional needs by purchasing gas at automotive refueling stations at market prices.
Analysis shows that 22 percent of consumers receive liquefied gas at intervals exceeding 46 days. In such instances, the monthly expenses for some families effectively end up being several times higher than the established official price.
Under current regulations, liquefied gas is supplied to the population and social facilities at subsidized prices. However, the gap between costs—covering production, importation, procurement, and delivery—widens year by year, increasing the need for budget subsidies.
The Head of State emphasized that the interests of the population must be the priority in this matter. He highlighted the necessity of ensuring timely delivery to the public, preventing supply disruptions, and supporting families in need of social protection. To this end, proposals have been developed for the phased reform of the liquefied gas supply system.
To reorganize the system for delivering liquefied gas to the population, it is proposed to establish a limited liability company, "LPG-Trade," with "Hududgaztaminot" acting as the founder. This entity will be responsible for purchasing liquefied gas via the commodity exchange and delivering it to the public in accordance with established procedures.
In this context, the determination of retail prices for liquefied gas will rely on the effective operation of economically sound mechanisms. Provision is also made for compensating socially vulnerable segments of the population for every kilogram of liquefied gas purchased.
This approach will allow for the gradual streamlining of pricing policy while simultaneously implementing a mechanism for targeted support to families in need. Directing budget funds to specific consumers, rather than relying on general subsidies, will enhance the system's fairness and efficiency.
Additionally, plans are in place to supply liquefied gas to social sector facilities at exchange prices and to cover—using funds from the republican budget—the deficit arising from sales to the population at the established fixed price.
Particular attention is being paid to expanding private sector participation. A pilot project involving private operators in the delivery of liquefied gas is planned for the Andijan region.
Operators will be required to hold the necessary licenses and permits and employ qualified technical and engineering staff. Services will be provided by at least two operators, and a mobile app and online services will be introduced for consumers. Taking into account the number of consumers and geographical distances, plans are in place to establish distribution points that comply with urban planning regulations and fire safety standards.
The possibility of gradually extending this experience to other regions will be considered in the future.
The President of our country emphasized the need to carry out reforms based on thorough calculations, ensuring convenience for the public and upholding the principles of social justice. Responsible officials have been instructed to organize liquefied gas supplies according to a strict schedule, digitize payment processes, ensure transparency in distribution, and prevent artificial shortages and unjustified price hikes.
Tasks have been defined regarding the timely payment of compensation to socially vulnerable groups, strict adherence to safety requirements at gas-filling facilities and during transportation, and the establishment of effective oversight of private operators' activities.
It was noted that the reforms are expected to establish a transparent and sustainable liquefied gas supply system, reduce delivery times, improve service quality for the population, and ensure the targeted and efficient use of budget funds.
Additionally, a report was presented on the progress of implementing supplementary instructions issued on September 2 regarding the construction of external infrastructure and a satellite city for the integrated nuclear power plant currently being built in the Jizzakh region.
During the presentation, an analysis was conducted regarding the balance of resources and distribution of liquefied gas, the current supply system, pricing and subsidy issues, and the impact of proposed measures on the population.
It was noted that approximately 3.8 million consumers and nearly 2,000 social facilities across the republic rely on liquefied gas supplies. This year, the supply of 604.8 thousand tons of liquefied gas is planned to meet the needs of the population and social facilities.
It was pointed out that several problems persist within the current system. In some regions, liquefied gas fails to reach consumers on schedule. As a result, residents are forced to meet additional needs by purchasing gas at automotive refueling stations at market prices.
Analysis shows that 22 percent of consumers receive liquefied gas at intervals exceeding 46 days. In such instances, the monthly expenses for some families effectively end up being several times higher than the established official price.
Under current regulations, liquefied gas is supplied to the population and social facilities at subsidized prices. However, the gap between costs—covering production, importation, procurement, and delivery—widens year by year, increasing the need for budget subsidies.
The Head of State emphasized that the interests of the population must be the priority in this matter. He highlighted the necessity of ensuring timely delivery to the public, preventing supply disruptions, and supporting families in need of social protection. To this end, proposals have been developed for the phased reform of the liquefied gas supply system.
To reorganize the system for delivering liquefied gas to the population, it is proposed to establish a limited liability company, "LPG-Trade," with "Hududgaztaminot" acting as the founder. This entity will be responsible for purchasing liquefied gas via the commodity exchange and delivering it to the public in accordance with established procedures.
In this context, the determination of retail prices for liquefied gas will rely on the effective operation of economically sound mechanisms. Provision is also made for compensating socially vulnerable segments of the population for every kilogram of liquefied gas purchased.
This approach will allow for the gradual streamlining of pricing policy while simultaneously implementing a mechanism for targeted support to families in need. Directing budget funds to specific consumers, rather than relying on general subsidies, will enhance the system's fairness and efficiency.
Additionally, plans are in place to supply liquefied gas to social sector facilities at exchange prices and to cover—using funds from the republican budget—the deficit arising from sales to the population at the established fixed price.
Particular attention is being paid to expanding private sector participation. A pilot project involving private operators in the delivery of liquefied gas is planned for the Andijan region.
Operators will be required to hold the necessary licenses and permits and employ qualified technical and engineering staff. Services will be provided by at least two operators, and a mobile app and online services will be introduced for consumers. Taking into account the number of consumers and geographical distances, plans are in place to establish distribution points that comply with urban planning regulations and fire safety standards.
The possibility of gradually extending this experience to other regions will be considered in the future.
The President of our country emphasized the need to carry out reforms based on thorough calculations, ensuring convenience for the public and upholding the principles of social justice. Responsible officials have been instructed to organize liquefied gas supplies according to a strict schedule, digitize payment processes, ensure transparency in distribution, and prevent artificial shortages and unjustified price hikes.
Tasks have been defined regarding the timely payment of compensation to socially vulnerable groups, strict adherence to safety requirements at gas-filling facilities and during transportation, and the establishment of effective oversight of private operators' activities.
It was noted that the reforms are expected to establish a transparent and sustainable liquefied gas supply system, reduce delivery times, improve service quality for the population, and ensure the targeted and efficient use of budget funds.
Additionally, a report was presented on the progress of implementing supplementary instructions issued on September 2 regarding the construction of external infrastructure and a satellite city for the integrated nuclear power plant currently being built in the Jizzakh region.
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