Ulaanbaatar
PM orders to reduce petroleum price in localities
PoliticsUlaanbaatar /MONTSAME/ The Prime Minister Ch.Saikhanbileg held the “Hour for solutions” weekly meeting on Wednesday at the “11 11” center, convening R.Jigjid, the Minister of Mining, and G.Olziiburen, a head of the Oil Authority.
Since a formation of the new cabinet one year ago, the “11 11” center has received messages from 25 thousand people, 500 of them were addressed to the Premier. Some 240 people contact the center every day, most of them complain about petroleum and other prices boost.
Noting that petroleum prices are very different in localities and urban areas, the Premier emphasized that one of the main duties of the cabinet is to equalize the localities and urban areas' petroleum prices. “The prices of petroleum are higher in rural areas, we must abolish this gap. It is no wonder that such a situation makes a half of the population live in the capital city," he said. "Fuel prices must not be affected by distances or road conditions," he added.
Officials keep talking about a reason of the price gap in petroleum due to transport expenses, "but the government should resolve this problem by an appropriate policy, solutions, flexible taxes and financial regulations,” the Premier said. The cabinet has launched concrete measures for the matter, for example, it has been decided to last Monday to fix excise taxes on imported oil and oil products in different sizes depending on regions.
Petroleum prices have been stable in the last three years, the government will carry out a policy to keep them stable further. "A policy is pursued to free local people from expensive prices of fuels, so foods and consumer products prices are expected to decline," Mr Saikhanbileg said.
During the meeting, the Premier obliged the Minister of Mining and the Oil Authority to collaborate in creating a reserve fund in times of oil price fall at the world market and to start measures for reducing petroleum prices in the localities this year.
