The special meeting of the
Government on June 10 decided to reduce excise tax on fuel with effect from
June 15. The tax on A-80 coming through border points at Sukhbaatar,
Zamiin-Uud, Ereentsav and Altanbulag has been reduced from MNT170,000 per ton
to MNT80,000. The tax on AI-92 has been reduced from MNT230,000 per ton to
MNT100,000 and that on diesel remains totally abolished. However, the rates
applicable to petroleum and diesel coming through remote border points have not
been changed. 

The Government hopes the measures
would help keep fuel prices stable. However, it is now clear Rosnefti LLC of
Russia will not be able to export sufficient petroleum and diesel and other
companies of Russia and China are being approached. Rosnefti’s rates per ton
for June supplies are USD118 for A-80, USD123 for AI-92 in and USD68 for diesel.
It will supply 8,000 tons of AI-92 while Mongolia’s monthly need is 20,000 tons.