Head of Mineral Resources Authority says fuel prices win remain stable
Head of the Mineral Resources Authority of Mongolia (MRAM) B.Baatartsogt spoke to the media briefly about fuel reserves and pricing.
How much does the government have in fuel reserves? There have been reports that the price of fuel might increase. Is this true?
We currently have a fuel reserve of 45 days of normal use. Namely, A80 gasoline has a reserve of 50 days, A92 gasoline 43 days, and diesel fuel 46 days. A Cabinet decree increased the excise tax on fuel. The previous tax rate of 70,000 MNT per ton was increased to 180,000 MNT per ton. Gasoline with an octane rating of 90 or higher was imposed a 100,000 MNT increase, amounting to 130,000 MNT per ton. Even with the tax increase, it is possible to keep the price of fuel steady. The reason is, the price of fuel has decreased on the global market and supply has increased. Also, the national currency’s stability will help maintain the price of fuel.
Foreign investors have expressed interest in exploration licenses. Can you tell us more about this?
There is a lot of work we are doing to attract the attention of those investors. For instance, making information more transparent and open, improving the legal environment, and opening up geological studies and research opportunities.
How much money did the MRAM contribute to the state budget?
As of July 25, 26 million tons of coal was extracted with 23 million tons sold. Around 19.1 million tons were exported. The MRAM was delegated the responsibility of contributing 233.5 billion MNT to the state budget. In order to increase revenue from oil fields, 128 boreholes were drilled and drilling wells were made operational at Toson Uul-XIX and TamsagXXI.
This has opened up the opportunity to increase the extraction of petroleum. Around 452 million USD will be used in the petroleum sector. With a target to extract 1.1 million tons of petroleum this year, as of July, 550,400 tons of petroleum has been extracted and exported. Therefore, as of June 31, 97.9 billion MNT was contributed to the state budget by the MRAM.