Working group investigates oil retail price increase

Economy
ooluun@montsame.mn
2017-02-06 17:04:43

Ulaanbaatar /MONTSAME/ A working group, composed of of representatives from the Department of Mineral Resources and Oil, Authority for Fair Competition and Consumer Protection and relevant agencies is studying to make conclusions on factors of oil retail price growth and define if the price increase was well grounded.

Oil price has grown up dramatically on the world market due to a decision on reduction of oil production. Brent oil price has grown up to USD 56.92 barrel on February 06, 2017 while it was USD 46.38 barrel on November 29, 2016. Accordingly, all types of imported oil price in Mongolia increased by USD 41-60 per ton in January compared to December 2016 and has influenced to retail price.

Considering the situation, the Government made decision to reduce excise tax on January 25, 2017 to keep the retail price stable. However, import oil price as of February has grown up by USD 22-26 per ton in each type, compared to a price of January and oil trading companies have raised their price up to MNT150 per liter nationwide depending on area and oil type, starting January 26.