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Free Gas Use Era Ended in Turkmenistan Due to Crisis

11/10/2017
В Туркменистане отменяют бесплатное пользование газом, электричеством…
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It is considered expedient to gradually introduce payments for the use of electricity, gas, water and salt. Such a statement was made on October 10 during the speech at the Council of Elders by Turkmen President Gurbanguly Berdymuhammadov, the press service of the head of state said.

“The main goal of granting unprecedented benefits in those years was the creation of favorable conditions amid the difficult economic situation in the world, and the adaptation of citizens to the market economy conditions,” the head of state said.

According to him, the deep integration of the country’s economy into the market relations system requires careful, rational, economical and highly efficient use of the national wealth.

Recall that for the first time the proposal to abolish free benefits was voiced during the meeting of the Council of Elders in 2015. In April 2016 Berdymuhammadov agreed with the proposal, stating that the benefits “do not justify themselves” and “hamper the transition to a market economy.”

However, later, in June 2016, the head of state suddenly announced that the country’s budget allows saving benefits for the population.

A year later, in June 2017, the President again stated that the system of benefits had become completely ineffective and ordered them to be canceled, adding that “benefits should not be given to everyone in a row, but only to those who really need social assistance.”

However, as experts note, the state budget of Turkmenistan is formed by 80% due to the export of gas and gas products. Since 2016, gas prices have fallen dramatically. In addition, Russia has refused to purchase Turkmen gas, and Iran has not been able to fully pay for gas imports of more than 7 bcm.

Tags: Crisis Turkmenistanfree gas TurkmenistanPresident of TurkmenistanТуркменистан

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