At the Government meeting on Monday, members discussed the MNT 260-per-liter increase in the price of gasoline, which has been attributed to the tugrik’s falling rate against the U.S. dollar.

Mineral Resources and Energy Minister D.Zorigt said Russian fuel exporters Rosnefti and THK LLC raised their prices due to rising crude oil prices and a new tariff on fuel transportation. 

In response, D.Zorigt said, the Government has decided to reduce the Value Added Tax on petroleum products, despite the Finance Ministry’s refusal to reduce it earlier.

D.Zorigt added that MNT 16.3 billion has already been allocated for a gasoline reserve. But the Government is planning to revise the state budget in April at the request of the Finance Minister. At that time, another MNT 22.5 billion could be allocated for the reserve.