Fuel price increases in Mongolia
On July 2, the price of AI-92 fuel was increased by MNT 300 per liter. The relevant authorities reported that the rising price of the oil in foreign markets has led to this increase in the country, which is relatively dependent on the international market.
Deputy Head in charge of Petroleum of MRPAM, said that the price of fuel distribution and sales in Mongolia depends on the price of oil in foreign markets, exchange rate or USD exchange rate, and the border price of petroleum products.
He pointed out that the MRPAM has reduced the retail price partially by MNT 380-570 since March, last year, in cooperation with fuel importing companies and enterprises. He also noted that the retail price of AI-92 gasoline was kept at MNT 1,450 per liter in the capital city and MNT 1,480-1,670 in rural regions despite the price of oil had been rising steadily at the international market.
According to the statistics of the MRPAM, Mongolia imported 468 thousand tons of fuel in 2019, 562 thousand tons in 2020 and 139 thousand tons in the first five months of 2021.
As of May 31, the price of a barrel of Brent crude oil was USD 68.88, increased by USD 25.8 compared to the same period of the previous year.
Moreover, In May, the International Energy Agency (IEA) revised its oil market review to reduce this year's supply by 270,000 barrels per day to 5.4 million barrels as the oil consumption in the United States and Europe was lower than expected in the first quarter of this year. This is due to the sharp decline in oil consumption in India.
source. UB info