Tashkent, Uzbekistan (UzDaily.com) -- Today, there are 2 large oil refineries in Uzbekistan with an annual production capacity of 9 million tons of oil products – the Ferghana oil refinery of the Industrial Energy Group (6.5 million tons) and the Bukhara oil refinery (2.5 million tons), administered by Uzbekneftegaz JSC.

These plants process hydrocarbon raw materials from more than 10 manufacturers, produce finished petroleum products, in particular Uzbekneftegaz, Industrial Energy Group, LUKOIL Uzbekistan Operating Company, Epsilon and others.

It should be noted that local hydrocarbon raw materials are not enough to fully satisfy the growing demand of the republic’s consumers for oil products.

Therefore, there is a demand for the import of hydrocarbon raw materials by extractive enterprises, as well as for the import of finished petroleum products by business entities.

Using the example of motor gasoline in 2022, the demand for motor gasoline within the republic amounted to 1.4 million tons, of which 812,000 tons (or 58%) from Uzbekneftegaz, 306,000 tons (22%) by the Industrial Energy Group, 237,000 tons (17%) by business entities through ready-made imports and 50,000 tons (4%) are planned to be supplied to other mining companies.

At the same time, the price for 560 thousand tons (40%) out of 1 million 405 thousand tons of motor gasoline directly depends on the prices of hydrocarbon raw materials (Brent oil) and finished motor gasoline in the world markets.

At the same time, in order to cover the increased demand for gasoline by increasing production volumes, Uzbekneftegaz is fulfilling the forecast indicators. This, in turn, has a positive effect on price stability. For 11 months of this year, Uzbekneftegaz produced 893,400 tons of motor gasoline, or 139,000 tons more than the forecast.

Also, the level of utilization of the production capacities of the Bukhara Oil Refinery, owned by Uzbekneftegaz, for the production of motor gasoline amounted to 152%. In order to cover the needs of consumers of the republic in oil products, Uzbekneftegaz JSC carries out regular work on the import of raw materials.

At the same time, the quotation of Brent oil these days was US$80, in October of this year it averaged US$94, and in November US$92. In addition, it takes time for raw materials transported from oil and gas fields located in foreign countries to arrive by rail at the Bukhara plant and be processed, placed on the exchange and delivered to consumers.

Uzbekneftegaz places at the stock exchange auctions AI-80 brand gasoline at a price of 6.9 million soums (or 5,300 soums per liter) per 1 ton. At present, based on the results of exchange trading, this price is formed up to 8,200-8,300 soums (6,300-6,400 soums per liter) or 18% -20% more than the initial price. The following factors influence the rise in prices.

Given that 65% of vehicles in the republic use methane as a motor fuel, the demand for gasoline in the republic this year is 1.4 million tons (or an average of 3.8 thousand tons per day), for methane gas – 4. billion cubic meters (or an average of 10.9 million cubic meters per day).

Today, the demand for gasoline is growing correspondingly in the context of restrictions on the operation of CNG filling stations (automobile gas filling compressor stations), which sell an average of 10.9 million cubic meters of methane gas per day.

In particular, an increase in the number of participants wishing to purchase products by 21.7% is observed at the auction of gasoline AI-80 of the Uzbekistan Commodity Exchange, and, as a result, demand increased by 50%.

Accordingly, from 7 December, measures will be taken to increase the supply of AI-80 gasoline to exchange trading by an average of 40-50%.

In 11 of the current year, business entities planned to import 216,000 tons of motor gasoline, in fact, 107 thousand tons were executed (or less than 109 thousand tons).

It is worth noting that during 2022, the price of Brent oil on world exchanges fluctuated sharply and rose to US$132, or 1.5 times more. In order to minimize the impact of these sharp fluctuations in the world market on fuel prices in the domestic market and ensure their stability, the prices for AI-80 gasoline sold through the filling stations of Uzbekneftegaz are stably maintained and currently amount to 6,800 soums per 1 liter.