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Transport services become cheaper: costs are being reduced

Uzbekistan
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Transport services will become cheaper: costs are being reduced
The government of Uzbekistan has launched a large-scale program to reduce the expenses of state transport companies and lower the prices of services. This was reported by Zamin.uz.

In particular, the companies "Uzbekistan Railways," Uzbekistan Airways, and Uzbekistan Airports have been tasked with reducing the cost of services by 20 percent. This measure is part of a strategy developed to increase the country's economic efficiency and enhance competitiveness.

According to Transport Minister Ilhom Mahkamov, the directive to cut costs was given to the companies at the beginning of the year. Specific action plans have been developed in this regard, with the final deadline for completing the tasks set for the end of 2025.

At the same time, the Ministry of Transport plans to adopt a separate decision in 2026 to optimize the expenses of major transport companies. These changes are being implemented against the backdrop of rising prices for transport services provided to the population.

According to data from the National Statistics Committee, over the past year, the price of domestic passenger airline tickets has increased by 57.3 percent. In this indicator, they rank only after the increase in prices for driving courses and carrots.

Shukhrat Khudoyqulov, Chairman of the Board of Uzbekistan Airways, announced the president's directive to keep airline ticket prices stable and strictly control the pricing process. In May, the Committee for the Development of Competition and Protection of Consumer Rights issued a warning to airlines against creating artificial scarcity of tickets.

Following this, price reductions were announced on some domestic routes. Additionally, it was noted that the rise in airline ticket prices is caused by a shortage of aviation kerosene.

Aviation kerosene accounts for more than half of the price and is distinguished by its resistance to freezing at low temperatures. The transformation processes cover not only pricing policy but also other sectors.

State transport companies are working to obtain credit ratings from international rating agencies. Furthermore, an audit of the procurement system is planned.

Mahkamov emphasized that a detailed action plan will be developed to accomplish all tasks.
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