Min­is­ter D.Su­miyabazar says gov­ern­ment in talks with China Oil

The UB Post - - Business & Economics -

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.

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