Mongolia sees sharp rises of fuel price www.news.mn
Mongolia saw sharp rises of fuel prices in the first quarter, with average price of the gasoline brand AI-92 up 64.8 percent year on year to MNT 2,390 per liter at the end of March.
The surge in the retail price of the most commonly used gasoline brand in Mongolia is due to the continued border restrictions caused by the COVID-19 pandemic, and the ongoing Russia-Ukraine conflict, according to the Statistics Office of Mongolia.
Currently, Mongolia has no oil refinery and relies heavily on Russia for gasoline and diesel fuel.
Since the beginning of this year, Mongolia has imported 443,700 tons of oil products, including 168,100 tons of AI-92 gasoline, according to a statement by the country’s Ministry of Mining and Heavy Industry.
Mongolia has its own oil fields producing enough crude for its requirements. However, almost all of its crude oil is exported and all of its finished petrochemical products are imported. Mongolia imports more than 90% of the oil products from Russia and the remainder from countries such as China, Republic of Korea. To reduce its dependence on imports, the Government of Mongolia has commenced construction of the country’s own refinery, supported by a USD 1.24 billion soft credit line from India. The refinery with an initial capacity of 1.5 million tonnes per annum is being built in Dornogobi province.
According to officials, construction of the refinery will be completed in 2025. Currently, 13 American companies and eight Indian companies are participating in the construction.
Published Date:2022-04-19