Minister D.Sumiyabazar says government in talks with China Oil

Minister of Mining and Heavy Industry D.Sumiyabazar has stated that his ministry and government officials are in talks with Rosneft to potentially lower gasoline import prices. The minister informed the Parliamentary Economic Standing Committee of this on Wednesday.

In addition, the minister informed the committee that the government is in talks with China Oil to increase fuel imports from China. In 2017, Mongolian demand for fuel totaled 1.49 million tons, of which 94.5 percent was imported from Russia, 3.4 percent from South Korea, 1.8 percent from China, and the remaining 0.3 percent from other countries.

D.Sumiyabazar discussed the government’s policy regarding the excise tax on fuel. Fuel importers have explained that a depreciating tugrug and geopolitical and economic issues on the global stage have affected fuel prices. Oil production of Venezuela has decreased sharply and the US sanctions on Iran coming into effect on November are major factors in oil prices.

The Ministry of Mining and Heavy Industry also mentioned that since relations between the US and Saudi Arabia are strained currently, oil prices could potentially surge significantly in November. Any change in global fuel prices usually affect Mongolia with a month’s delay due to sale agreements with Rosneft and other fuel exporters.