Starting in 2028, the allocation of subsidies for electricity and gas from the state budget is set to cease. This was announced on December 18 by Deputy Prime Minister, Minister of Economy and Finance Jashid Kuchkarov during a plenary session of the Senate of the Oliy Majlis.
In his speech, he stated that the budget project for 2025 includes a planned allocation of subsidies amounting to 28.3 trillion sums, with a significant portion (12.3 trillion sums) directed towards the energy sector. Following that is the heating system, which accounts for 4.8 trillion sums.
According to him, the purpose of raising tariffs on electricity, gas, or heating is to cover part of the production costs and to provide an opportunity for further development.
“We have reached a situation where it was necessary to raise the income levels of the population to a certain point to increase tariffs. We concluded that we should give people time to improve their welfare, as they need money to pay for [higher] tariffs,” the official stated.
The Deputy Prime Minister noted that in recent years, the poverty level in Uzbekistan has halved, which has laid the “foundation” for implementing reforms in the energy sector. If tariffs are increased, then citizens' incomes should also rise to afford them, he emphasized.
The head of the Ministry of Economy and Finance specifically addressed the question of why subsidies from the budget remain in place despite the increase in tariffs for energy resources.
“Firstly, the tariffs have not yet reached the level of full cost coverage. Secondly, this is due to the fact that we import a certain portion of gas. In this regard, we have no other option but to raise tariffs to the level of self-sufficiency,” Kuchkarov reported.
Based on this, the Cabinet approved another increase in tariffs for energy resources starting April 1, 2025. However, in the following year, subsidies for electricity and gas will be reduced from 12 to 7 trillion sums.
Additionally, the Deputy Prime Minister shared plans to reduce and completely eliminate subsidies allocated from the budget for the energy sector by 2028.
“In 2025 and 2026, this [allocation of subsidies] will continue, and in 2027 it will sharply decrease. From the beginning of 2028, subsidies will no longer be issued from the budget,” he assured.
Earlier, Spot reported that charging stations for electric vehicles are being forcibly disconnected in Uzbekistan.