New fuel pricing committee recommends maintaining fuel prices to importers

The newly formed fuel pricing committee convened on March 1 to draft recommendations to fuel importing companies regarding the pricing of fuel.

The fuel pricing committee is a public-private joint committee comprised of representatives from several different government agencies, private companies, and civil society organizations. The rules and procedures of the committee were changed by Cabinet on February 23, effectively making Minister of Mining D.Sumiyabazar the chair of the committee. Previously, Deputy Minister of Mining D.Zagdjav chaired the committee.

“In recent months, the price of petroleum on the global market increased dramatically. Due to this, the import price of fuel has been relatively high, with many fuel importing companies still operating at a loss. However, the price of fuel imports for March have decreased and the price of diesel is expected to begin decreasing as demand is lower in summer. In addition, the tugrug is on an upwards trend of appreciation. As a result of this and several other factors, the committee recommends maintaining the current prices for retail fuel,” the committee stated in its recommendation.

The Mineral Resources and Petroleum Authority, Authority for Fair Competition and Consumer Protection, and the General Agency for Specialized Inspection have been tasked with monitoring the regulation and oversight of pricing for fuel importing companies.

As of February 27, Mongolia has a 43-day fuel reserve for regular use. In terms of A-80 fuel, there is a 62-day reserve, AI-92 and AI-95 have a reserve of 31 days, diesel fuel has 42 days, and jet fuel has a reserve of 47 days.