The Authority for Fair Competition and Consumer Protection (AFCCP) has imposed a 4.9 billion MNT fine to NIC, the National fuel importer company, for allegedly intentionally creating a false fuel shortage last November.

The Authority for Fair Competition and Consumer Protection (AFCCP) accused the company for neglecting the ban to serve customers with vouchers when the fuel reserves are not low on 6th and 7th November, violating the regulation ruled by the AFCCP.

The Petroleum Authority also proved the allegation that the company created a false fuel shortage through an inspection.

But NIC refuted the allegation and sued the Administrative Court claiming the Authority imposed illegal fines.

O.Magnai, the Chief of the Authority for Fair Competition and Consumer Protection explained that “it is not acceptable for the State to grant lower interest loans to a company that sued against a State agency. Therefore we suspended 50 billion lower interest loans that were to be issued to NIC by the Central Bank. We expect now that the Court will reach a fair decision on the case”.

Not including the 4.9 billion MNT fines to NIC, the Authority for Fair Competition and Consumer Protection also imposed 17 billion and 249 million MNT fines to eight importer companies for increasing the fuel price to 230 MNT after conspiring together in 2011.

The Authority for Fair Competition and Consumer Protection imposed fines of 6 billion MNT to NIC, 4.5 to Magnai Trade, 2 billion to Sod Mongol and 1 billion to Just Oil, Oin Birj, Shunkhlai Trade, M Oil and PetroJump LLC.

However, last May B.Lhagva canceled the fines to fuel importers claiming the allegations were reasonless after he was appointed the Chief of the Authority for Fair Competition and Consumer Protection. 

O.Magnai again raised the issues of fines at the directors` board meeting of the Authority for Fair Competition and Consumer Protection to recover the fines due from the fuel importers after he was appointed as the Chief.

B.Lhagva , the former chief of the Authority for Fair Competition and Consumer Protection has been questioned by the Anti Corruption Authority over the case.