Just Oil, Magnai Trade and Shunkhlai LLC increased their fuel prices by 20 to 40 MNT per liter on Wednesday. Shunkhlai increased its A-80 fuel price by 20 MNT, while Just and Magnai Trade increased their A-80 fuel price by 20 MNT and their AI-92 fuel and diesel fuel by 40 MNT per liter.
An official source reported that all fuel stations raised their fuel prices by the same amount on Thursday.
Seven months ago, fuel importers submitted a request to the government, the Petroleum Authority of Mongolia (PAM) and Agency for Fair Competition and Consumer Rights (AFCCR) to increase fuel prices as the importers claimed to be suffering from a great deal of deficits when the USD rate against MNT radically hiked.
The government didn’t approve of the request as consumer goods prices were likely to increase following any increase in fuel prices.
Last year, the fuel importers had an average deficit of seven percent.
PAM’s Petroleum Products Supply Division Chief, L.Radnaasuren said about the increase, “AFCCR will check whether the fuel increase had a rightful basis. Major fuel importers such as NIK and Magnai Trade are supposed to officially submit their fuel increase requests to AFCCR, and they did.”
Regarding the increase, Prime Minister N.Altankhuyag said, “The government conducted a one-year program to stabilize fuel prices and the price was reduced 50 MNT thanks to the program. The fuel price has no grounds for an increase even though the program has ended. However, the government is not responsible for managing price fluctuations varying between 10 or 20 MNT.”
In other words, the government will do nothing as long as the fuel prices are raised in moderation, and will respond only when prices are increased by at least 90 MNT per liter.
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