Fuel price cut prompted for fair competition and consumer protection

The Authority for Fair Competition and Consumer Protection (AFCCP) sent another letter of demand to fuel importers and distributors last Friday to urge them to lower fuel prices...

The Authority for Fair Competition and Consumer Protection (AFCCP) sent another letter of demand to fuel importers and distributors last Friday to urge them to lower fuel prices.

Mongolia’s main oil supplier, Russian Rosneft Oil Company, cut fuel prices by 82 USD to 148 USD per ton depending on the type of oil product last December. Mongolian oil importers, in contrast, started to lower retail petroleum prices by 50 MNT to 90 MNT after the authority demanded them on December 25 to cut down prices in connection to the slump in global oil prices.

Rosneft recently lowered its rate for petroleum and AFCCP strongly believes this provides adequate grounds to make another cutback on petroleum prices.

“As of January 2019, price of A-80 petroleum at the border became 501 USD a ton, AI-92 reached 531 USD a ton and diesel fuel costs 599 USD a ton. Compared to the previous month, fuel prices dropped by 86 to 107 USD per ton depending on the type of product. This is a realistic condition for once again reducing fuel prices,” the authority wrote in the letter.

AFCCP prompted importers to cut fuel prices at all of their branches across the country accordingly and report back on measures they have taken by January 11. In the letter, the authority warned that it will hold non-cooperative companies accountable in accordance with the Law on Conflicts.