After the MPP caucus meeting on Tuesday, Prime Minister and MPP Chairman S.Batbold, caucus chairman U.Enkhtuvshin, and MP Ch.Ulaan spoke with journalists.

They said a working group studying rising gas prices presented a report to the caucus. The report found that the fall of the tugrik against the U.S. dollar was a factor in gas prices rising from MNT 200 to MNT 240 per liter.

Ch.Ulaan, the head of the working group, said the tugrik fell by MNT 53 against the dollar in December. But Ch.Ulaan also said prices are rising faster than the tugrik is falling. For example, Ch.Ulaan said, the price of flour has increased by MNT 100 when it only should have risen by MNT 2 or MNT 3. Microbus fares have increased by MNT 200 or MNT 300, when they only should have risen by MNT 30 and MNT 40. The prices of goods and services have likewise increased disproportionately.

S.Batbold said the Government will hold accountable those officials who approved the increase in gas prices. He said if petroleum importers raised prices without a good reason, or if they conspired to raise prices, the Government could suspend or cancel their import licenses. He said petroleum importers, the Consumers Rights Protection Association, Mongol Bank, and related ministers will discuss the regulation of fuel prices. After those discussions, he said, the Government will determine the feasibility of price regulations.

U.Enkhtuvshin said that the MPP caucus believes that the Government should oversee the import of petroleum, select the companies that sell it, and promptly commence the construction of oil refineries.