Fuel Pricing Committee convenes to discuss increases in petrol prices

The Fuel Pricing Committee convened on January 9 to discuss whether or not fuel prices will be increased and government measures to stabilize prices.

Even though officials have said that prices have not been increased, price upticks and supply limits have been reported with several gas stations around the country increasing rates. Reports by customers indicated that fuel importers such as Tes Petroleum LLC have sold A-92 fuel for 1,790 MNT per liter while the majority of other filling stations charged 1,630 MNT per liter.

Headed by Deputy Minister of Mining and Heavy Industry D.Zagdjav, the Fuel Pricing Committee consists of the deputy finance minister, deputy minister of roads and transport development, and the deputy governor of Mongol Bank.

In addition, several governmental agencies have a seat on the committee including the General Agency for Specialized Investigation, the National Emergency Management Agency, the Authority for Fair Competition and Consumer Protection, General Taxation Office, General Intelligence Agency, and Mongolian Customs.

The committee also hosts several representatives from fuel importing companies, which include NIK LLC, Magnai Trade LLC, Shunkhlai LLC, M-Oil Group LLC, and Sogmongol Group LLC.

There is an expectation that the committee will put an end to the speculation about increases in fuel prices and make a final decision on whether or not to increase the price of fuel. Increases in the excise tax on petroleum have been postponed twice at the committee’s request.

Prime Minister U.Khurelsukh’s recently stated that fuel prices might increase due to global market forces. He stated that since the global market price of petroleum has increased, fuel importing companies have been “losing” money.