US dol­lar surge against tu­grug and fuel prices rise

The UB Post - - Highlights Of 2018 -

The gov­ern­ment and Mon­gol Bank had set a goal to sta­bi­lize ex­change rate fluc­tu­a­tion and in­crease the pur­chas­ing power of MNT, but they could not reach th­ese goals in re­cent year.

Through­out the last months of this year US dol­lar dra­mat­i­cally rose against tu­grug, and the most re­cently Naiman Sharga Ex­change Mar­ket traded one USD for 2,680 MNT, which is an all-time high level.

The of­fi­cial ex­change rate of US dol­lar at Mon­gol Bank was 2,639.21 MNT on De­cem­ber 4, which il­lus­trated the high­est ex­change rate of Mon­gol Bank this year.

As tu­grug ex­change rate de­cline against for­eign cur­ren­cies, Mon­go­lians have ex­pe­ri­enced fuel price hikes through­out the lat­ter half of this year.

In Oc­to­ber, the Min­eral Re­sources and Petroleum Author­ity (MRPA) an­nounced that due to the rise in petroleum fuel prices on the world mar­ket, Ros­neft Oil Com­pany pro­vid­ing Mon­go­lia with fuel raised border fees of gaso­line and diesel, which caused Mon­go­lian fuel im­porters to in­crease their gaso­line and diesel prices. Fuel price were raised four times this year.

The MRPA re­quested petroleum com­pa­nies im­port­ing fuel from Rus­sia to lower their fuel prices as Ros­neft re­duced its price in mid-Oc­to­ber.

In re­sponse to the MRPA’s re­quest, fuel im­porters agreed to re­duce fuel price by 100 MNT per liter on De­cem­ber 7.

The Min­istry of Min­ing and Heavy In­dus­try and MRPA an­nounced that they will take step by step mea­sures to re­duce fuel prices in the fu­ture.

The gov­ern­ment launched a project to build the oil re­fin­ery this year to help the coun­try’s econ­omy be­come less re­liant on fuel im­ports and to sta­bi­lize fuel and com­mod­ity prices.

In June, Prime Min­is­ter U.Khurel­sukh at­tended the ground break­ing cer­e­mony of the oil re­fin­ery, which is be­ing built in Al­tan­shiree soum of Dornogovi Prov­ince.

The re­fin­ery will have a pro­cess­ing ca­pac­ity of 1.5 mil­lion met­ric tons of oil per year and will an­nu­ally pro­duce 560,000 tons of gaso­line and 670,000 tons of diesel fuel, as well as 107,000 tons of liq­ue­fied nat­u­ral gas. In­dia has pro­vided a 700 mil­lion USD loan for the oil re­fin­ery and 264 mil­lion USD for pipelines that will con­nect oil re­sources in Dornod Prov­ince to the oil re­fin­ery. The 20-year loan will have an an­nual in­ter­est rate of 1.75 per­cent and prin­ci­pal pay­ments will be waived dur­ing the first five years.

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