Prime Minister S.Batbold called Minister for
Mineral Resources and Energy D.Zorigt and the Chief of the Petroleum Authority,
J.Amarsaikhan, to a meeting yesterday to discuss the petroleum situation. He expressed
surprise and unhappiness that all sorts of contradictory rumors were being
allowed to spread, adding to uncertainty and panic buying.

Zorigt said the situation regarding diesel is getting
normal, with supply to mining companies such as Ouytolgoi, and to the needs of
agriculture already stable. However, even as diesel availability eased, rumors
of petrol shortage led to 5,000 tons being sold a day instead of the usual
2,000 tons. There is two weeks of petrol in stock now. 

Zorigt said Russia always responded to requests
for increased fuel supply by raising issues of Ulaanbaatar Railway and Tavan Tolgoi.
Amarsaikhan blamed panic buying and hoarding for aggravating the shortage.

The Prime Minister heard them out and asked them to submit
regular reports on developments so that decisions on excise and custom duty and
prices could be taken.  The next meeting
with Russian government officials will be held in Ulan Ude.