The FINANCIAL — According to RIA Novosti, Turkmenistan's government has moved to end ten years of virtually free gasoline in the impoverished Central Asian state, raising the price eightfold on February 11 from a mere 2 cents per liter.
Cheap fuel was one of the social subsidies introduced by the ex-Soviet republic's late autocratic leader Saparmurat Niyazov, along with free water, natural gas and salt, which remain free to Turkmen citizens.
The gasoline and diesel price hike from 400 to 3,100 manats (16 cents) per liter follows a decree to introduce "commercial prices" signed by President Gurbanguly Berdymukhamedov on February 8. National media said the move was aimed at limiting the uncontrolled consumption of car fuel in the county.
The new price is still several times below that in Russia, where gasoline costs an average of 80 cents, and much less than in the European Union, where prices range from $1 to $2 per liter.
Car owners in Turkmenistan are still entitled to 120 liters of free fuel each month. Truck and bus owners get 200 free liters.
However, the price hike had a visible effect, with traffic noticeably thinner in Turkmen cities during the Monday morning rush hour. Car owners formed long lines outside filling stations over the weekend following the announcement of the fuel hike.
Although the country earns substantial revenue from its main exports, natural gas and cotton, the economy has suffered from years of corruption and restrictions on private enterprise. Data on the country's economy remain state secrets, but unemployment is known to be over 50%.
Ex-president Niyazov, who styled himself 'Turkmenbashi' (the head of all Turkmen) and cultivated a bizarre cult of personality, ruled the largely desert state with an iron fist from the end of the Soviet era until his death in late 2006.
His successor, Berdymukhamedov, has made some moves toward opening the country up to the outside world, including lifting a ban on Internet access. He has also called for widespread reforms of the country's decaying healthcare and education systems.
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