Key facts
- Mongolia is experiencing fuel shortages and rising prices for gasoline and diesel.
- Prices have increased to nearly $1.5-$2 per liter from about $1 per liter.
- The shortages are linked to a fuel crunch in Russia, Mongolia's main supplier.
- Russia's export ban on gasoline and diesel has exemptions for countries like Mongolia.
- Russian diesel supplies to Mongolia increased by 7% from January to July, but gasoline and jet fuel supplies varied.
Mongolia is experiencing significant fuel shortages and rising prices, with queues forming at petrol stations across the country. The issue stems from a fuel crunch in Russia, the dominant supplier of gasoline and diesel to Mongolia. Ukrainian drone attacks on Russian oil refineries and high seasonal demand have contributed to Russia's domestic fuel crunch.
Bolorchuluun Tsendgombo, director of the policy and planning department in Mongolia's food ministry, confirmed the problem, stating that fuel prices have risen to nearly $1.5 to $2 per liter, a substantial increase from approximately $1 per liter in the spring. Despite Russia's export ban on gasoline and diesel, Mongolia is exempt due to inter-governmental pacts on fuel supplies.
Trade data indicates that Russian diesel fuel supplies to Mongolia increased by 7% to 1.05 million metric tons between January and July. Gasoline exports also rose to 515,000 tons from 450,000 tons, while supplies of jet fuel saw a 40% decrease to 32,000 tonnes. In July alone, Russia's motor fuel exports to Mongolia declined to 173,000 tons from 186,400 tons in June.
In other related news, Mongolia may reduce its imports of Russian grain due to an expected larger harvest, after purchasing about 100,000 tons of wheat last year. The discussions occurred on the sidelines of the Eastern Economic Forum in Vladivostok, where Mongolian Prime Minister Nyam-Osoryn Uchral met with Russian President Vladimir Putin, highlighting traditional ties between the two nations.