The Agency for Fair Competition and Consumer Protection is carrying out studies in the airplane fuel market.

The Head of the agency, T.Ayursaikhan, held a meeting with the directors of the following companies: MIAT, AeroMongolia, Tengerin Ulaach, Tomas Air, Geosan, and Blue Sky LLC.  

During the meeting, T.Ayursaikhan told the representatives of the air transportation companies, “Our organization is carrying out an inspection of the airplane fuel market. As you know, airplane fuel supply companies have decreased their prices for fuel. And they have said they can decrease prices further.   

"We are aiming to maintain national companies and create favorable market conditions for them.  From your side, please put attention on the creation of favorable conditions, not only for services provided to your customers, but also in regard to prices."

One of the airline company representatives noted, “Fuel occupies 30 to 40 percent of our total expenses. We are asking to establish fair competition in the airplane fuel market and stop the monopoly of these companies.   

"In the case that favorable conditions are created in the airplane fuel market, it will also be possible to decrease prices for passenger transportation."   

Mongolia meets its  fuel consumption entirely from imports, and in 2013 a total of 58,600 tons of petroleum were imported, and 45,000 tons of airplane fuel in 2014. Of the imported petroleum 78.6 percent was from Russia, 12.7 percent from Belarus, and 8.4 percent from Lithuania.   

Sodmongol Group LLC is importing 80 percent of airplane fuel in Mongolia, and Mergenvan LLC carries out the sales and refueling of airplanes. Reportedly due to the high prices of petroleum, MIAT has been working at a loss and Eznis Airways has filed for bankruptcy.