Prices Rise, Market Storms, and Government Introduces Restrictions

Prices Rise, Market Storms, and Government Introduces Restrictions: What is Happening with Fuel in Turkmenistan

The global fuel market is experiencing one of its most turbulent periods in recent years. A sharp rise in the price of diesel and other petroleum products is being recorded worldwide, from the USA to the Persian Gulf countries. The reason is obvious: the escalation of the conflict in the Middle East and the blockade of the Strait of Hormuz — one of the key routes for oil and gas supplies. The consequences were not long in coming.

In the United Arab Emirates, diesel has risen in price by almost 70%, in the USA by 50%, reaching a level of 1.3–1.4 dollars per liter. This is a global chain reaction: logistics are disrupted, supply is shrinking, and prices are rising. Against this background, Turkmenistan looks like a country with “artificially cheap fuel” — the official price of diesel here remains at a level of about 1 manat (approximately 5 cents per liter), which is dozens of times lower than global figures. But behind this “stability” lies a systemic problem. From April 1, the authorities of Turkmenistan introduced a strict restriction: now cars traveling abroad may have no more than 300 liters of diesel fuel in the tank. For every liter over the norm, drivers will have to pay an additional 20 manats (about 1 dollar). President Serdar Berdimuhamedov signed the corresponding Decree No. 1768. Responsibility for enforcement is assigned to the customs and border services together with state oil structures. In practice, this means total control:

at customs points, specialists will measure the volume of fuel in every vehicle, record the data in electronic systems, and even duplicate them in paper logs. The official goal is to combat the export of cheap fuel abroad. And indeed, with such a difference in prices, the resale of diesel becomes a super-profitable business. However, the problem is much deeper. Inside the country, a fuel shortage has been observed for a long time. Drivers face restrictions at gas stations, where they are dispensed less fuel than needed, and unofficial surcharges reaching up to 200% of the set price are demanded for “extra liters.” In other words, the market already operates according to shadow rules: the money simply goes not into the budget, but into the pockets of intermediaries. Instead of systemic reform, the authorities choose administrative bans. Meanwhile, the global context only increases the pressure. The higher the prices outside Turkmenistan, the stronger the incentive to export fuel illegally. The 300-liter limit is a reaction to the consequences, not a solution to the cause. Neighboring countries, such as Kazakhstan and Russia, are also introducing restrictions, up to a complete ban on fuel exports. But there, these measures are accompanied by a more transparent pricing policy and attempts to stabilize the market. In Turkmenistan, however, a paradox remains:

on the one hand, some of the lowest prices in the world, on the other — shortage, corruption, and now even stricter control.

The question remains open:
why, with colossal resources, can the country not build a transparent and effective system of fuel distribution? While the government continues to fight the consequences, ignoring the causes, the market will respond in kind: with shortages, grey schemes, and rising tension among the population.