UNJUSTIFIED INCREASE IN FUEL PRICE WILL BE PENALIZED

Ulaanbaatar /MONTSAME/ In connection with the Government’s decision to increase excise tax on fuel, filling stations began to impose limits on their supply. These limitations have caused citizens to worry about potential fuel price hike. Chief of the Authority for Fair Competition and Consumer Protection (AFCCP) B.Lkhagva stated its stance on the matter. He said, “AFCCP is currently examining whether a condition to limit supplies was really created. Retail sellers do not have a legal justification for raising prices and fabricating shortages. We met with related officials of the companies which imposed limits and also sent advisory letters to importers to prevent from creating fuel shortage. If companies artificially increased demand and raised prices, they will be fined at 4-6 percent of their sales revenue of the previous year depending on offences, according to the related clauses of the laws on Competition and Offence. Last week, Mineral Resources and Petroleum Authority reported that the fuel prices would be discussed by the Public and Private Consultative Council responsible for maintaining and monitoring oil supply and prices. Currently, our country has oil reserves equal to approximately 38 days' consumption. O.Onon