We deliver news, articles and updates on Mongolia every day in English and Mongolian. Just visit your English version to read the current news. Infomongol.mn also provides monthly, quarterly and annual reports on Mongolia for your areas of interest. We would be very delighted to serve you and be your long term news source. 

S.Byambatsogt and J.Enkhbayar, MPs had delivered a questionnaire to R.Jigjid, Minister of Mines on September 1 of last year to provide explanations on the fuel price regulations giving the decline of fuel price at global market and to study opportunities whether the price of the fuel could be set same in urban and rural areas. They had requested to provide the response not later than Parliament session of Spring 2016. Minister R.Jigjid delivered his report today (January 22, 2016, Friday) at the Plenary session.

Minister said that “For Mongolia which is 100% imports its oil products, the state implements series of actions to ensure regular supply of oil products, to increase and maintain the stock, to import at global market price, to reduce the dependence from a single supplier, to not burden the state budget and to stabilize the retail price. The retail price consists of the border price, taxes, operational costs and profit.

Considering the border price decline, the Government had taken some step by step measures to cease the financial support and exemptions. For instance, the loan rate issued to the fuel importers set at 3.9% included in the sub-program on stabilization of pricing carried by the Central bank was increased to 16-18 starting from January 1, 2015.

The Parliament ratified the revenue rate to be collected into the budget from the custom duties and VAT on fuel in 2015. Relating to the Government imposed new rates for the fuel with resolution #18. Along with that the Government had raised the customs duty on fuel from 1% to 5%. The price reduction in rural areas is restricted today with the customs duties, VAT, excise tax within the applicable laws and regulations. In order to reduce the fuel price in remote areas, the state retains the excise tax at Zero rate for the fuel imported through other ports except main border points. We believe that the outcome of this diverse tax regulation will be effective in mid-term”.

D.Khayankhyarvaa, MP clarified “Quite long time had passed since we are discussing the issue of the fuel price reduction. The price of the oil products had went down by almost 80% at the global market and reached US$28 a barrel. Are there any potential to decrease the price in such circumstances?”

Minister R.Jigjid said that the global oil price decline depends from various factors whereas some are instable. We observe this fluctuation and stand on the position whether do we need to go along with this price fluctuation. The reports and forecasts on various international organizations revealed that the oil price may go up a little but at the end the price will definitely escalate. Therefore, we need to maintain the price steady, to reduce when it’s feasible along with collecting taxes for the budget and this policy shall be retained.

For Mongolian version please click here

Монгол эхийг унших бол энд дарна уу