DUSHANBE, 15.07.2020. (NIAT Khovar) – The current liquified petroleum gas (LPG) price hikes do not serve the interests of the suppliers, since the jump from 4.2 somoni to 4.6 somoni will push drivers to switch to alternative, more affordable fuel types such as gasoline or diesel. Thus, by increasing LPG prices, gas stations run the risk of losing customers, and consequently their income. This was said today at a press conference by the head of the Antimonopoly Service Abdumajid Muminzod.

According to him, the real wholesale cost of one liter of LPG in the domestic market is 3.2 somoni. Working groups of the Antimonopoly Service are currently checking prices of ten major LPG supplying companies.

“In case of unreasonably high prices, violators will face administrative measures,” Muminzod noted.

Meanwhile, he explained that somewhat earlier LPG prices were lower due to lack of demand at the beginning of the COVID-19 pandemic.

There are 15 companies supplying LPG to Tajikistan. None of them have a more than a 20% share of the market. The domestic company Alad has a 17% share of the liquefied fuel market, while Gazprom has only a 8.4% share.

According to legislation, the Antimonopoly Service does not have the right to interfere in the pricing process of LPG due to the absence of any one business dominating the market. Domination is recognized as having a 35% share of the market.