Mongolia faces fuel shortages as Russian exports decline in July

  • Mongolia is experiencing gasoline and diesel shortages linked to disruptions in Russia.
  • Fuel prices reached nearly $1.5 to $2 a litre, up from roughly $1 in spring.
  • Russia’s July motor-fuel exports to Mongolia fell to 173,000 tons from 186,400 tons.

Mongolia is facing gasoline and diesel shortages after fuel supply disruptions in Russia, its dominant supplier. Long queues were reported at petrol stations nationwide, prompting sales restrictions last month. Fuel prices in Mongolia rose to nearly $1.5 to $2 a litre from roughly $1 in spring, according to Bolorchuluun Tsendgombo, director of the policy and planning department in Mongolia’s food ministry. Russia’s gasoline and diesel export ban exempts Mongolia under an inter-governmental fuel-supply pact, but traders said diesel deliveries rose 7% to 1.05 million metric tons between January and July, while July motor-fuel exports fell to 173,000 tons from 186,400 tons in June. Mongolia may reduce Russian grain imports after an expected larger harvest. The developments came as President Vladimir Putin met Mongolian Prime Minister Nyam-Osoryn Uchral in Vladivostok and described bilateral ties as a comprehensive strategic partnership.

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