The Government recently decided to create a 15-day, MNT 5 billion reserve of gasoline to be used in case of a fuel shortage or price increase.

That decision has led some people to believe that a fuel shortage is imminent. To quell those rumors, the Deputy Minister for Mineral Resources and Energy, B.Ariunsan, has said there will be no fuel shortage.

He explained that the Government’s decision to create a fuel reserve is aimed at preventing a fuel shortage. B.Ariunsan said the Government is taking some measures to ensure there will not be another shortage. A fuel shortage similar to last spring’s will not be repeated, he added.

The Deputy Minister also said Mongolia imports gasoline from several Russian companies, and Mongolia has long-term agreements in place for the importation of fuel from Russia. Mongolia also imports 10,000 tons of gasoline from China every month.

He added that Mongolia has a 14-day diesel reserve and a 20-day gasoline reserve. B.Ariunsan also stated that fuel prices will not be increased. The Government has also decided to create a MNT 18 billion fuel reserve next year. It will primarily be for the agriculture and mining sectors.