Tashkent, Uzbekistan (UzDaily.com) —  Uzbekistan will stop providing state budget subsidies for electricity and gas starting in 2028, Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov announced during a plenary session of the Senate on 18 December.

In his address, Kuchkarov highlighted that the 2025 budget allocates 28.3 trillion soums for subsidies, with a significant portion — 12.3 trillion soums — designated for energy and 4.8 trillion soums for the heating system.

He explained that the gradual increase in tariffs for electricity, gas, and heating aims to partially cover production costs and create a foundation for the sector’s sustainable development.

The minister emphasized that raising tariffs required first improving household incomes so that citizens could afford higher utility costs. Over the past few years, Uzbekistan has halved its poverty rate, providing a basis for implementing reforms in the energy sector.

Kuchkarov clarified that subsidies persist despite tariff hikes because current rates still do not fully cover expenses. Additionally, Uzbekistan relies on importing part of its gas supply. He noted that increasing tariffs to a self-sustaining level is unavoidable.

He also announced that in the spring of 2024, the government will approve another tariff increase for energy resources starting from 1 April 2025. However, subsidies for electricity and gas will decrease from 12 trillion soums to 7 trillion soums next year.

While subsidies will continue in 2025 and 2026, they will significantly decline in 2027, with a complete phase-out planned by early 2028.