The Competition Development and Consumer Rights Protection Committee has set a price ceiling on propane at the commodity and raw materials exchange (UzRTSB). This was reported to Spot by several market participants.
According to the Competition Committee's directive dated November 5, a price increase limit (spread) of 20% from the initial seller's price for liquefied gas was introduced starting Wednesday.
Over the last two trading days, the price of propane has increased by more than 15%, surpassing 10.1 million sums per ton on Tuesday. Economist Otobek Bakirov noted that the price of propane at the exchange yesterday exceeded that of AI-80 gasoline, which cost less than 10 million sums per ton.
The rise in prices may have been caused by a decrease in supply. While the volume of propane offered at the exchange on November 1 was over 2,000 tons, it dropped by 30% to 1,400 tons by November 5.
According to Spot's sources, on November 6, the exchange price of propane fell sharply, as the starting price for liquefied gas is significantly lower than the market price. Thus, the price ceiling artificially restrains exchange quotations, limiting competition since all participants can only offer the maximum allowed price.
A similar situation was observed last year with AI-80 gasoline. At that time, the introduction of a purchasing limit on fuel reduced the number of buyers, leading to the closure of some gas stations.
In October, Energy Minister Jurabek Mirzamakhmudov explained the sharp increase in liquefied gas prices by insufficient production growth, an increase in the number of propane vehicles, and the presence of intermediaries.
Earlier, Spot reported that the head of the Central Bank highlighted the risks of dependence on Russia for gas and oil supplies.