Increase in petrol prices stipulated by several economic factors in Uzbekistan

Baku, Azerbaijan, Jan. 16

The recent 20 percent rise in petrol and diesel fuel prices in Uzbekistan was caused by declining oil production volumes in Uzbekistan and the need to purchase huge volumes of crude oil to overcome the petrol shortage, according to the independent experts, analyzing the trends in the energy market.

The production of liquid hydrocarbons decreased by 2.2 times from 7.24 million tons in 2002 to 3.17 million tons in 2012 in Uzbekistan, according to the official statistics. The crude oil production decreased to 1.56 million tons (2.6-fold) with the total domestic consumption of 4.4 million tons. The internal demand will continue increasing taking into account the annual increase in the number of cars in the country, the experts say.

The Uzbek fields depleted on average by almost half. Their remaining recoverable reserves amount to more than 50 million tons, according to the experts.

More than 1,500 new wells must be drilled and commissioned to improve oil recovery of the fields at least 5-10 percent for the next 10 years, according to Uzbekneftegaz's geological estimates.

This will ensure an increase in the annual oil production to two million tons based on the minimum value of productivity at the level of five tons per day, as well as an increase in the amount of up to three million tons with a production rate of wells up to 10 tons per day.

Such a program will cost nearly $3 billion, according to estimates.

Under the conditions of reducing oil production, the Uzbekistan government has intensified the process of starting the production of oil products from alternative sources of raw materials - synthetic fuel (GTL - gas to liquid process), processing of shale ore and the use of methanol, as well as by transferring the significant part of the country's car fleet to liquefied and compressed gas.

Nevertheless, this requires significant investments. One GTL-plant will be constructed by Uzbekneftegas jointly with South African Sasol and Malaysian Petronas at an estimated cost of $4 billion.

In order to increase the supply of motor fuel to the domestic market, the government of Uzbekistan allowed UzGazOil LLC, owners of the largest network of gas stations, to process imported raw materials in local refineries on a tolling basis this year and sell it in the domestic market at commercial prices, which is by 1.5 -2 times higher than the officially set prices. However, this didn't solve, only slightly mitigated the problem.

Uznefteproduct JSC, which includes hydrocarbon processing plants in the country, said in July 2013 that in order to maintain stability in the oil market, Uzbekistan is forced to increase imports of raw materials from neighboring countries for processing at its own refineries.

"To stabilize the situation Uznefteproduct JSC takes strong measures to increase the production of gasoline at refineries, including through import of additional volumes of raw hydrocarbons," the statement stressed.

Import volumes of oil and contract value of procurement were not disclosed. According to some sources, the volume of purchases of raw hydrocarbons from Turkmenistan alone amounted to 50,000 tons per month.

Based on this, it is easy to assume that the state costs on oil imports are quite high. Even when the state invested so heavily in increasing the capacity of production of hydrocarbons and petroleum products from alternative sources of raw materials, the government failed to find another way out but to raise the price of motor fuel for the first time in 2.5 years.

As previously reported, the previous increase in gasoline prices occurred in Uzbekistan in August 2011, when prices rose by about 10 percent.

The official exchange rate on January 10 is 2203.29 soums / $ 1.

Translated by N.H., L.Z., M.L.

Edited by C.N.

Iran's trade turnover with Turkmenistan decreases
Iran's trade turnover with Turkmenistan decreases
Details of agricultural products exported to Iraq via Iran's Mehran customs announced
Details of agricultural products exported to Iraq via Iran's Mehran customs announced
Iran's companies can offer technical services in Azerbaijan's Karabakh
Iran's companies can offer technical services in Azerbaijan's Karabakh
Loading Bars
Japan interested in creation JVs in Uzbekistan in production and services spheres
Iran's trade turnover with Turkmenistan decreases
Details of agricultural products exported to Iraq via Iran's Mehran customs announced
Turkmenistan's Main State Service opens tender for equipment purchase
Participation in funeral to be permitted via Azerbaijani Interior Ministry's Call Center
Toughened quarantine in Azerbaijan turned out to be effective - President's assistant
Vaccination of people aged over 65 to begin on Feb. 1 - Azerbaijani president's assistant
Storage facilities for COVID-19 vaccines being created in Azerbaijan's Shusha
Nepal requests India for early provision of COVID-19 vaccines
S Jaishankar attends sixth meeting of India-Nepal Joint Commission
At 18 million, India has largest diaspora in the world: UN
Azerbaijan to purchase vaccines via Fund for Combating COVID-19
Baku subway, public transport not to work on weekends until quarantine ends
Azerbaijan reveals volume of imported Chinese Sinovac vaccine
Azerbaijan shares footage from liberated Hajikand village of Kalbajar (PHOTO/VIDEO)
Operational Headquarters of Azerbaijan talks international, domestic flights
Prime Minister Modi Launches pan India rollout of COVID-19 vaccination drive
GM to invest C$1 billion in Canada plant to manufacture electric vans
Azerbaijan to start vaccination from COVID-19 - Operational Headquarters
Barbershops and beauty salons in Azerbaijan to start working soon
Kazakhstan sees decrease in exports to EAEU countries
Review of transactions in national currency at Turkmen exchange for Dec. 2020
Total amount of transactions on Turkmen Commodity Exchange for Dec. 2020
Iran's companies can offer technical services in Azerbaijan's Karabakh
Azerbaijan to resume activity of shopping centers, museums, barbershops
Weekly review of Azerbaijani currency market
Uzbekistan reveals its COVID-19 data for January 16
Ban on entry-exit to some cities, regions of Azerbaijan remains in force
Azerbaijan makes wearing face masks mandatory both indoor, outdoor
Public catering facilities in Azerbaijan to resume activity soon
Aftershock rocks Indonesia quake zone as search continues
Kazakhstan's coal extracting venture to transformer substations via tender
Azerbaijan softens toughened quarantine regime
Turkmenistan, IBRD sign protocol of negotiations on COVID-19 response draft
Azerbaijan cancels SMS-permissions for leaving homes due to COVID-19
Iranian currency rates for January 16
Iran expects balance in foreign currency rates
Azerbaijan's import of grain from Russia's Stavropol for 2020 revealed
Mass inoculation of Russians against coronavirus to begin on January 18
Indonesia quake kills at least 42, injures hundreds
U.S. Health Secretary Azar condemns Capitol violence in resignation letter
UzAuto Motors doubles cars production volume in 2020
France's coronavirus death toll approaches 70,000
Over 600,000 have received Sinovac shots in Turkey's vaccination program
5.4-magnitude quake jolts southern Iran
Hotel occupancy increases in all Georgian regions
Trump directs government to minimize procurement from China
WhatsApp to delay launch of update business features after privacy backlash
Brazil reports more than 1,000 COVID deaths for fourth consecutive day
Number of COVID-2019 cases across globe up by over 709,000 in past day
UN chief calls for "far greater solidarity" in message on 2 millionth COVID-19 death
Money transfers to Georgia up in December 2020
WHO advises against proof of COVID-19 vaccination for int'l travel
BMW to recall 21,693 cars in Russia
We are having tea in pear-shaped glasses, baklava on Jidir Duzu. Let our friends rejoice, enemies get blind! - President Aliyev (PHOTO/VIDEO)
It is such unique feeling to see Shusha, to return to Shusha - President Aliyev
Commander-in-Chief came to Shusha for first time in 30 years and, frankly, does not want to leave - President Aliyev
Those who grew up over 17 years have liberated these lands - President Aliyev
Prepare report here, not in your cabinets - President Aliyev to international organizations
Global COVID-19 deaths surpass 2 mln
People of Azerbaijan will live in Shusha forever - President of Azerbaijan
All martyr families will be provided with apartments and houses by state - President Aliyev
In May 1992, Shusha was occupied as result of betrayal of PFPA-Musavat duo - President Aliyev
Today, I brought busts of our geniuses Khurshidbanu Natavan, Uzeyir Hajibayli and Bulbul to Shusha - President Aliyev
It is impossible to imagine Shusha without Jidir Duzu, and Azerbaijan without Shusha - President Aliyev
Mausoleum of Molla Panah Vagif was inaugurated exactly 39 years ago, I was standing right here - President Aliyev
After desecrating busts of our genius personalities, Armenians took them to Armenia to be melted down and sold - President Aliyev
Armenia must answer in international courts - Azerbaijani MFA
I said no, we will take these busts back only after liberating Shusha from enemy, put them in their original places - President Aliyev
Iran ready to establish joint automobile company in Iraq
Kyrgyzstan’s public debt reaches USD 4 bln 887.46 mln
Turkey reports over 8,000 new COVID-19 cases
UK records another 55,761 coronavirus cases, 1,280 deaths
Israel has vaccinated over 2 mln people against COVID-19
Britain tightens borders to keep out new COVID-19 strains
Kazakhstan's national operator for main oil pipelines reports decrease in oil transport
Int'l community must condemn Armenia's actions against Islamic religious monuments - Azerbaijani MP
Azerbaijani Economic Council holds first meeting in 2021
Shusha's residents proud of seeing Azerbaijani president in Shusha city
Group supporting Russian export to Azerbaijan renders assistance for foreign trade transactions in 2020
President of International Judo Federation congratulates Azerbaijani president
Azerbaijan increases total volume of exported gas in 2020
European Gymnastics to focus on competitions planned for 2021
Azerbaijan's foreign trade balance remains positive in 2020
Export operations between Azerbaijan and Australia greatly increase
Azerbaijan establishes National Agency for Mine Clearance of Territories of Azerbaijan
Int'l structures willing to cooperate for 'Green Energy Zone' in Azerbaijan's Karabakh (PHOTO)
Georgia reveals volume of electricity imported from Azerbaijan
Georgian Hualing Group implements new construction project
Georgia outstripping European preferences for innovations in some areas - MasterCard
Afghanistan always supports Azerbaijan in its just cause - Ambassador
Azerbaijani, Finnish FMs discuss latest situation in region
Whole world to see rapid economic recovery in Azerbaijan's liberated lands - Russian MP
Azerbaijani, Russian FMs exchange views on tasks of Jan. 11 joint statement
Georgian Enguri HPP rehabilitation project carried out with support of EBRD and EU
President of Georgia, NATO Secretary-General to meet in Brussels
How can leaders of Muslim countries be friends with country that destroyed mosques? - President Aliyev
President Aliyev presented Holy Quran to Saatli Mosque
In near future, we will ensure restoration of Shusha in planned manner - President of Azerbaijan
Despite all pressures, phone calls and threats, I said that we would go to end - President Aliyev
All news