Period for exempting some petroleum products from customs duty extended

2022-07-27 15:11:46

Ulaanbaatar /MONTSAME/. During its regular meeting today, the Cabinet made a decision to extend the effective period of Government Resolution No. 161 from August 1, 2022 to January 1, 2023. Aimed at preventing the further increase in the retail price of fuel, the decision will allow some petroleum products to be exempt from customs duty until the end of this year.

In order to reduce the increase in fuel prices, the Ministry of Mining and Heavy Industry reached an agreement with the Russian company Rosneft to purchase 120,000 tons of AI-92 gasoline at the border price of USD 840 per ton. As a result, the retail price of AI-92 gasoline, which was estimated to reach MNT 3,325 per liter in April, has been stabilized at MNT 2,390.

In July 2022, as a result of another negotiation, an agreement has been reached to buy AI-92 gasoline at USD 830 per ton from Rosneft until the end of December of this year. As a result, the border price of AI-92 gasoline, which reached USD 1,285, was reduced to USD 830 per ton, or the retail price of 1 liter of the product was reduced from MNT 3,728 to MNT 2,390. Moreover, it became possible to maintain the price of AI-92 at MNT 2,390 per liter until the end of the year.