In an effort to counter prices rising because of increased taxes on Russian fuel exports, the Government yesterday decided to reduce its own import taxes. Duty on diesel will be MNT200,000 less per ton, on A-80 coming through Sukhbaatar, Zamiin-Uud, Ereentsav and Altanbulag MNT30,000 less per ton, and on AI-92 MNT60,000 less per ton. Rosnefti increased price of diesel by USD96, of A-80 by USD28 and of AI-92 by USD59. Since the Russian company cannot support diesel according to Mongolia’s needs, an order has been placed with TNK LLC for diesel at USD1,250 per ton.

Minister for Mineral Resources and Energy D.Zorigt submitted a report on the petroleum situation at the Government meeting. Chief of Mineral Resources and Petroleum Authority D.Amarsaikhan blamed panic buying for making the situation worse. Fuel importers had said on May 5 they had stocks for 19 days.

The meeting asked Zorigt and Finance Minister S.Bayartsogt to talk to Russian authorities to see how the situation could be normalized. It also decided to submit a report to the National Security Council.

The members asked Minister Zorigt to take prompt action in preparing better product sharing agreements in the oil mining sector. They also approved the drafts of such agreements with the Sansriin Geology Exploration LLC, which would work in the Nomgon-IX area.