Submitted by MONTSAME on

Fall in oil price at the world market is affecting a petrol price in Mongolia too. Retail gasoline price has been cut by 5 cent in Ulaanbaatar city, and by up to 4 to 20 cents in localities.
The Minister of Mining R.Jigjid:
- The petroleum products are usually transported through northern borders, and they are shipped to provinces via Ulaanbaatar city. The transportation of gasoline to remote areas costs high, so the price is different in localities depending on locations and distance. In order to make the local price of petroleum the same as in the capital city, the government of Mongolia and importers of oil products have taken a policy measure. As a result, the retail price of fuel has lowered. It is also related to a current price drop of crude oil at the world market.
Despite being an oil producing country, Mongolia is still importing all of petroleum products from abroad due to the lack of oil refineries. Until recent time, the Russian Rosneft company had a monopoly in setting petrol price in Mongolia, but now our country has started to import fuel from Japan, South Korea, Singapore, Belarus and Latvia through territory of China.
Having been gone reached its peak, the petroleum price has been constant in last 3-4 years in Mongolia thanks to gaining several sources of the import. In addition, the country restored the tax on petroleum products, therefore money flow into the national economy has increased. Aiming at improving the petroleum supply, the government of Mongolia has started to focus attention to infrastructure constructions near the border checkpoints through which petroleum will be supplied. Furthermore, the government is maintaining a policy on nullifying the tax on imported fuels in 4-5 years. By doing so, the retail price of petroleum is expected to be regularized at an appropriate level. The government also aims to build refineries.
By the way, in 2015 Mongolia exported 1.1 million tons of crude oil.

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