Retail fuel price drops againEconomy
Ulaanbaatar /MONTSAME/. Rosneft, major petroleum supplier to Mongolia, has been reducing its border prices for the past three months, reports Ts.Erdenebayar, Head of the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) yesterday, May 26.
In January, the border price of imported fuel was USD 630-646 per ton due to falling oil prices at the world market. In May, the price fell by USD 98-158 per ton compared to the previous month and he stressed that this situation has a positive effect on fuel prices in the domestic market.
In May, A-80 fuel price lowered by MNT 50 per liter, and AI-92 fuel by MNT 80-100, AI-95 fuel by MNT 200 and diesel fuel by MNT 160 respectively, making the total decrease in the retail price of fuel since March 18 - MNT 380 for A-80, MNT 475 for Ai-92, MNT 440 for Ai-95 and MNT 590 for diesel fuel per liter.
Head of MRPAM Ts.Erdenebayar stated that the average retail price of fuel in Ulaanbaatar city should be kept at MNT 1350 for A-80 fuel, MNT 1360 for Ai-92 fuel, MNT 1800 for Ai-95 fuel and MNT 1990 for diesel fuel per liter respectively.
However, as of today, the average price of fuel in Ulaanbaatar is MNT 1320-1400, and MNT 1590-1670 in remote aimags and rural areas such as Gobi-Altai and Zavkhan. The national average price is MNT 1426-1506, according to MRPAM.
As of May 19, the country has reserve of petroleum products for 39 days’ consumption nationwide, more specifically, A-80 fuel – for 61 days, AI-92 fuel – for 33 days, diesel fuel – for 40 days, aviation fuel- for 8 days.
On March 27, the government announced that the retail price of fuel per liter would be gradually cut by MNT 300-400, beginning from April 15 as part of the economic measures to alleviate the negative impacts imposed by COVID-19 pandemic on the Mongolian economy. Officials noted that certain actions have been carried out to implement the measure, such as maintaining constant supply of AI-92 in the previous 8 months, increasing the supply of Euro-5 fuels within the national program on air pollution reduction and others.