Fuel price remains unchanged

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Although retail prices of petroleum has remained the same from July to late-August, wholesale prices saw minor decreases, reported the Ministry of Mining and Heavy Industry on Wednesday.

According to the ministry, Monpetex LLC lowered diesel fuel price by 20 MNT per liter and petrol stations in Darkhan-Uul Province cut down prices of AI-92 type fuel by 30 to 70 MNT per liter and diesel fuel by 20 to 40 MNT per liter.

On Wednesday, the ministry shared plans to export 8.15 million barrels, or 1.1 million tons, of crude oil this year and generate revenue of 335.6 billion MNT to the state budget. As of July, Mongolian oil producers had extracted 4.09 million barrels (554,957 tons) of crude oil and exported 3.87 million barrels (525,300 tons). This brought revenue of 134.34 billion MNT, which is 40 percent of the projected revenue to the state budget.

In the previous month, Mongolia had extracted 3.01 million barrels (408,091 tons) of oil and exported 2.84 million barrels (385,746 tons). By early May, this sector had centralized 47.5 billion MNT to the state budget as revenue.

At the national level, the authority has stocked up enough A-80 type fuel reserves to last for 37 days, AI-92 to last for 42 days, diesel fuel to last for 97 days and aviation fuel TS-1 reserves to cover for up to 20 days.

So far, almost 1.2 billion tons of fuel has been imported to Mongolia, according to the ministry.

Petrol prices

Petroleum prices haven’t gone down much since the Authority for Fair Competition and Consumer Protection lowered prices three months ago.

Currently, local oil providers – Petrovis, Sod Mongol, Shunkhlai, Magnai Trade, Tes Petroleum, M-Oil, Sinchi Oil and City Gas Energy – are selling AI-92 fuel for 1,780 to 1,840 MNT in Ulaanbaatar, AI-95 for 2,230 to 2,240 MNT and diesel for 2,350 to 2,370 MNT.

Petrol station workers reported that AI-80 is not sold as well as other types of fuel in the capital as its price is much lower outside of the city. They said that this type of fuel currently costs between 1,600 MNT and 1,750 MNT in rural settlements.

A study conducted by the Ulaanbaatar Statisticals Office shows that oil distributors sold AI-95 fuel for 2,285 MNT per liter as of July 10, but a month later, specifically on August 21, the price had declined by 45 MNT to 2,240 MNT per liter.

Dulguun Bayarsaikhan