Uzbekistan's state-run oil and gas company increased the price it charges domestic customers for natural gas by 8.5 percent on October 1, moving further to close the giant gap between domestic and export prices.
Uzbekneftegaz announced on its website in late September that it will now charge local consumers, including domestic industries, 151,740 sums ($70.70 at the official exchange rate) per thousand cubic meters (tcm) of natural gas. According to calculations by the private Novyy Vek daily, that’s an 8.5-percent rise. The paper notes the domestic tariff also rose 14 percent in April and has risen 45 percent over the past 12 months.
Uzbekistan sells gas at $290 per tcm to Kyrgyzstan, a Kyrgyz official told Kazakhstan's Tengrinews this summer. So the subsidized domestic price is less than a quarter of what Tashkent earns from selling gas abroad.
That might explain widespread shortages of gas and electricity in rural areas each winter, as Tashkent increases exports to neighboring countries and China.
According figures cited by Novyy Vek, domestic consumption stands at around 50 billion cubic meters (bcm) annually. Output fell by 0.2 percent to 62.9 bcm in 2012.