For more than 25 years, Turkmenistan citizens enjoyed a rare privilege in the modern world: free access to basic amenities like natural gas, electricity and water. But that era is now over as the Central Asian nation moves toward eliminating long-standing subsidies in order to adopt market-based economic reforms.
A Historic Policy Change
Turkmenistan, a gas-rich but economically isolated nation, has officially ended its decades-old policy of providing free utilities to its people. The decision, announced by President Gurbanguly Berdimuhamedov, is part of broader efforts to reform the economy, rationalize the use of natural resources and promote sustainable development. As of 2019, the government gradually phased out these benefits, with the final cuts taking full effect shortly after.
The move marks the end of a social assistance system introduced in 1993 by then-President Saparmurat Niyazov, known as Turkmenbaşı, who ruled Turkmenistan as a self-proclaimed president for life. Under his rule, every citizen was entitled to generous monthly allowances – 35 kilowatt hours of electricity, 50 cubic metres of gas and 250 litres of water per day.
Why The Change?
The government cites economic necessity and resource efficiency as the driving forces behind this reform. President Berdimuhamedov has long criticized utility subsidies as “ineffective,” especially given the country’s declining state revenues and the changing dynamics of the energy market. In a 2017 address, he instructed officials to be prepared to cancel all such benefits altogether, saying, “Help should be provided only to those who are really in need.”
Despite having the world’s fifth-largest natural gas reserves, Turkmenistan has suffered a decline in export revenues due to low demand from major buyers such as Russia and Iran. Today, China remains its primary gas customer, giving the country limited leverage in pricing negotiations.
Political Landscape and Power Dynamics
Turkmenistan has been ruled by autocratic regimes since gaining independence from the Soviet Union in 1991. After Niyazov’s death in 2006, Berdimuhamedov took power, solidifying his rule through a personality cult and undemocratic elections. In 2022, power passed to his son, Sardar Berdimuhamedov, in an election that observers deemed neither free nor fair – establishing a political dynasty.
Although Turkmenistan officially adopted a multiparty constitution in 2008, political opposition is nonexistent. All parties operate under the guidance of the ruling Democratic Party, where any form of dissent is not tolerated. Public gatherings without government approval are still illegal, and press freedom is heavily restricted.
Public Reaction and Living Conditions
The end of free utilities has put additional financial pressure on ordinary Turkmen citizens. Once considered a rare state benefit in a region with economic instability, free gas and electricity were part of the government’s strategy to maintain public loyalty. Now, citizens must pay market prices in an economy with limited employment options and restricted trade.
This policy change comes amid growing discontent over economic stagnation. While the capital, Ashgabat, is known for its grand marble buildings and monuments – including a golden statue of Niyazov – rural areas remain underdeveloped. Healthcare and education have faced cuts before, and regional inequalities have been deepened by the closure of hospitals and libraries outside the capital.
Looking Ahead: What’s Next for Turkmenistan?
As Turkmenistan moves toward a market-based economy, the end of free utilities signals a shift in both domestic policy and national identity. Whether these reforms will truly improve living standards or simply deepen the wealth gap is uncertain.
For now, citizens are left to adjust to life without the privileges they once believed were guaranteed. The government has promised targeted aid for the most vulnerable, but concrete details are still scarce.
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