The Authority for Fair Competition and Consumer Protection (AFCCP) announced that the fuel prices per liter are going to increase by MNT 50 effective yesterday. As informed by Business Mongolia previously, Mongolian importers of petroleum products have received soft loans from the government in order to maintain retail prices at a stable rate. If the loans were not obtained, the importers have said, the price increase would have been as high as MNT 210 per liter.
As of yesterday, “Sod Mongol”, “Shunkhlai”, and “Magnai Trade” companies added MNT 50 to retail prices of the fuel except for AI 95. This increase has taken the retail price of A-80 to MNT 1530 per liter, while prices for gasoline AI-92 and diesel are jumped to MNT 1620 and MNT 1750. However, NIC, one of the largest importers and retailers of the petroleum goods, has not yet increased their prices. According to the company, they are currently looking into the issue, conducting more research. NIK did not receive the soft loan offered by the Mongol Bank and government, and therefore is more likely to increase their retail prices well above MNT 50, if they decide to change the prices.
The government has issued loans totaling to MNT 83 Billion to fuel importers to date within the framework of the price stabilization program. It is hoped that these participating companies, having received a loan with favorable terms, will be able to maintain stability for retail prices on the fuel products regardless of fluctuations of the foreign currency rates. More details about the “Price Stabilization Program” can be obtained at http://www.mongolbank.mn/pricestability.aspx.