Petrol Price Shakeup Panics Turkmen Drivers

Sharp increase in petrol prices accompanied by a rationed allowance alarms drivers used to paying a pittance for fuel.

Drivers in Turkmenistan are concerned about a radical shakeup of petrol prices, in a country where car fuel has cost next to nothing until now.
On February 9, ministers approved a twin-track reform, ending the old system of selling petrol for only a few cents per litre and introducing more realistic pricing.

Drivers will now have to pay 2,800 to 3,100 manats per litre, equivalent to 17 to 20 US cents. This is still very low by international standards, but represents a massive price hike for local consumers. Until now, a litre of petrol in oil- and gas- rich Turkmenistan cost only 300 to 400 manats, or around 2.5 US cents.

To cushion the blow, the government simultaneously introduced a form of rationing, in the shape of a free petrol allowance.

On presenting a coupon, car drivers are entitled to 120 litres of free petrol a month. Drivers of buses, lorries and tractors can get 200 litres of fuel and motorcyclists and scooter riders 40 litres.

Vehicle users obtain their free petrol coupons from banks on presentation of a passport, a vehicle registration document and a certificate of roadworthiness.

The authorities said the allowance was introduced to ease the transition to market economy rules, as any fuel that drivers obtain beyond the fixed quotas will be on sale at the new prices.

Gundogar