Petrol prices slide down 280-300 MNT

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Some petrol stations lowered their prices by 280 to 300 MNT per liter on Monday as promised by the government.

Earlier this month, the government announced that petrol prices would be reduced by 300 MNT per liter starting April 15. As of Monday, large fuel suppliers such as Petrovis, Sod Mongol, Shunkhlai and Magnai Trade reduced prices of AI-92 type fuel by 280 to 300 MNT to around 1,500 MNT per liter, AI-95 by around 200 MNT to 2,000 to 2,050 MNT per liter.

Petrovis decreased its AI-92 price to 1,500 MNT per liter and AI-95 fuel price to 2,050 MNT per liter. It also cut diesel fuel price by almost 300 MNT to 2,150 MNT per liter. Shunkhlai’s petrol stations near the Peace Bridge in Sukhbaatar District and Tasgany Ovoo area in Chingeltei District lowered their prices. These stations are selling AI-92 for 1,500 MNT, diesel fuel for 2,150 MNT, and AI-98 and Euro-5 for 2,200 MNT per liter each.

On Monday, Magnai Trade decreased its prices in two of its 49 petrol stations in Ulaanbaatar. Its branches in 10th khoroo and next to the Traffic Police Department are selling AI-92 for 1,500 MNT, diesel fuel for 2,150 MNT, and AI-95 for 2,050 MNT and AI-98 for 2,220 MNT per liter. On the other hand, Sod Mongol has 42 petrol stations across the capital and five of them lowered prices. At these petrol stations, AI-92 costs 1,490 MNT, AI-95 costs 2,000 MNT, and diesel fuel costs 2,150 MNT per liter.

On the same day, the Mongolian Petroleum Consumers’ Association complained that the reduction of 300 MNT is insufficient, saying that studies indicate it’s possible to cut fuel prices  by up to 650 MNT.

“The price of a barrel of crude oil has gone down by 46 USD in international markets, while it’s gone down by only 50 MNT in Mongolia. Globally, a barrel of oil costs 23 USD now, down from 69 USD in January 2020,” noted O.Byambadelger, head of the association. “Based on our calculations, a real price cut would be to lower prices of AI-80 by 500 MNT, AI-92 by 500 MNT, and diesel fuel by 650 MNT per liter.”

The association strongly believes that a higher cut in fuel prices can help lower prices of widely used commodities, as well as make it possible to reduce the public bus fare by 100 MNT.

The association demanded the government to further cut prices by April 15 before threatening to block Peace Avenue and the two roads on either side of the State Palace if their demand is not met.

Dulguun Bayarsaikhan

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