A number of fuel importer companies have put up the fuel price by 50 MNT at the turn of the new year. The reason behind the fuel price increase is still uncertain. As a result the leading fuel importer companies Magnai Trade and Shunkhlai increased fuel price up to 1670 MNT per liter. The A-80 price is now 1580 MNT, diesel and AI-95 1800 MNT.

The price increase was not announced in advance. However the increase was managed without chaos. Customers questioned the fuel price increase when they bought fuel for 1620MNT on December 29th. The fuel price increase started from the MT gas stations of Magnai Trade in the eastern part of the City. Two days later every gas station in the City increased the price of fuel.

Our journalist tried to identify the reason behind the fuel price increase from the Authority for Fair Competition and Consumer Protection (AFCCP). But officials of the Authority for Fair Competition and Consumer Protection refused to give more details because it seemed as if they had been ordered not to give information about fuel price increase to journalists.

According to a source, the Authority for Fair Competition and Consumer Protection (AFCCP) required a reasonable warrant for fuel price increase from МТcompany.

The Central Bank of Mongolia and the Ministry of Mining signed an agreement to issue soft loans to fuel importer companies two months ago.

As a result of the agreement importer companies were granted circulating assets for one percent of interest per year by the Central Bank of Mongolia. In return the importer companies promised not to increase fuel prices.

It seems like the measure has not worked. Russia has pushed again their aggressive offer to build up 100 gas stations in Mongolia.

Russian did not forget to bring up the offer during the XVI Inter-governmental Committee meeting on Trade, Economy, Science and Technical cooperation between Mongolia and Russia on December 21st. This is a strong response by Russia to strap Mongolia for failing to cooperate on strategic projects.