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Why is propane getting more expensive? Domestic market situation explained

Why is propane getting more expensive? Domestic market situation explained

Uzbekistan’s Competition Committee issued an official statement on the recent rise in liquefied gas (propane) prices and the situation at exchange trading. According to the statement, price formation is mainly affected by a higher share of imported products and seasonal demand.

Share of local product has decreased

During 2025, a total of 358 thousand tons of propane were sold through exchange trading. Looking at the figures, the situation changed as follows:

  • Annual indicator: 61% of the gas sold came from local producers, while 39% came from importers.
  • Sharp decline: If in the first half of the year the share of local gas was 80%, by January 2026 this figure had dropped to 10%.
  • Reason: Locally produced liquefied gas is primarily allocated to meet household needs and supply social sector facilities.

Price gap and restrictions

The Committee introduced a number of protective mechanisms to prevent sharp price spikes in the domestic market.

  • Price cap: A 20% spread (growth limit) and a 5-ton purchase limit were set for local gas. As a result, the local product price did not exceed 7 million soums per ton.
  • Import factor: The price of imported gas was around 8 million soums. Today, due to an increase in the starting price of imported product, the average exchange price has risen to 9.5 million soums (a 20% increase compared to December).

Vehicles and consumption volume

According to statistics, 11% of all vehicles in the republic run on propane. In the total value of fuel products sold for cars, propane accounts for only 5%.

Appeal to social media activists

The Competition Committee warned that spreading various unsubstantiated messages about prices could negatively affect market stability:

“Misrepresentation of information about rising retail prices may lead to violations of market principles and the artificial formation of a single (high) price. Therefore, caution is needed when disseminating information,” the statement said.

Price monitoring at fuel stations is currently being carried out continuously, and prompt measures are being taken to stabilize the situation.

In your opinion, to reduce propane prices, should import volumes be increased or should local production be expanded?

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