Mongolia is experiencing fuel shortages due to difficulties in obtaining necessary petrol volumes from neighboring Russia, according to an official from the Mongolian Ministry of Food, Agriculture and Light Industry.
Bolorchuluun Tsendgosbo, head of the policy and planning department at the ministry, reported that the republic is now affected by internal market conditions within Russia, Reuters reported.
Under an intergovernmental agreement between Ulaanbaatar and Moscow, Mongolia imports nearly 95 percent of its fuel from Russia. While this bilateral treaty explicitly exempts Mongolia from Russia's general fuel export ban, supply disruptions have nevertheless impacted shipments across the border.
The lack of incoming supply has led to a sharp increase in domestic fuel prices. During the spring, a liter of petrol cost an average of one dollar, but prices have since climbed to between 1.50 dollars and 2 dollars per liter.
Rationing and queues at petrol stations
To manage the tightening supply, fuel station operators across the country have introduced strict sales restrictions, according to agency sources. Drivers have faced long queues at petrol stations throughout the nation as motorists wait to buy limited fuel allowances.
Mongolia is a landlocked nation in East Asia situated between Russia to the north and China to the south. The country relies heavily on petroleum imports to fuel its transportation network, power agricultural machinery, and sustain regional trade across its vast territory.
The Ministry of Food, Agriculture and Light Industry oversees national agricultural policies, food security, and rural development. Fuel availability plays a critical role in supporting seasonal farming activities and securing domestic food distribution chains.
Previous assurances and economic policy
The current shortages follow earlier statements from government officials regarding energy stability. In June, Gongoryn Damdinnyam, Mongolia's Minister of Industry and Mineral Resources, urged citizens not to panic over possible shortages of Russian petroleum products, stating that supply lines had stabilized and storage depots held sufficient fuel reserves.
Rising energy prices have since spilled over into the broader economy, pushing up the cost of living. In early August, Zagdjavyn Mendsaikhan, head of the Ministry of Finance of Mongolia, announced that authorities had decided to create strategic food reserves in response to rising food prices and ongoing instability in the fuel market.
The Ministry of Finance of Mongolia oversees public financial administration, fiscal policy, and national emergency reserves. Government-held reserves are designed to mitigate supply shocks and stabilize consumer prices during periods of international market disruption.
