Cars Queue for Fuel
An aerial view shows cars queuing for fuel at a gas station in Bagakhangai, Mongolia, on August 25, 2026, amid a fuel shortage that has disrupted supplies and raised concerns over the country’s energy security.

Ulaanbaatar, September 29, 2026 — Pressure on Mongolia’s fuel market is continuing, with queues still reported at fuel stations in Ulaanbaatar and the provinces. To stabilise supplies, the government is seeking to increase imports from Russia while also expanding purchases from China and South Korea to diversify its sources.

Mongolia’s fuel market has long been heavily dependent on Russia. However, difficulties in Russia’s domestic petroleum-products market this year, along with export controls and reduced supply volumes, have begun to directly affect Mongolia. According to the government, an agreement has been reached with the Russian side to increase petrol supplies from September and maintain stable deliveries of winter diesel fuel from October.

AI-92 reserves cover about 10 days of consumption

As of September 29, Mongolia had 20,500 tonnes of AI-92 petrol, equivalent to roughly 10 days of supply at normal consumption levels. The country also had 14 days of AI-95 petrol, 85,600 tonnes of diesel fuel, or 21 days of supply, and 4,670 tonnes of aviation fuel, equivalent to 23 days.

On September 28, a total of 1,848 tonnes of AI-92 was supplied to 168 fuel stations in Ulaanbaatar and 1,002 tonnes to 78 stations in the provinces. However, supplies have not yet reached a level sufficient to meet demand evenly, contributing to queues at some stations.

The Fuel Emergency Task Force said distribution could be organised more evenly and queues could begin to ease once reserves reach 20 days of consumption. At present, reserves cover just over 10 days, creating uneven supply conditions at distribution points.

Mongolia begins sourcing fuel from China and South Korea

To reduce the risks associated with reliance on Russian supplies, Mongolia is stepping up efforts to procure fuel from China and South Korea.

A contract has been signed to import 8,000 tonnes of AI-92 petrol from China, and transportation has begun. As of September 29, 140 rail wagons carrying 8,400 tonnes of AI-92 had entered Mongolia and were being transported by rail.

In addition, arrangements have been made for South Korea to supply 12,000 tonnes of fuel, and companies have begun allocating the shipments, officials said. They said the relatively low price of the Euro-5 products supplied by South Korea could help ease pressure to raise prices for this type of fuel.

The moves show that Mongolia is attempting to reduce the risks of relying on a single source for its fuel supplies.

Rail gauge differences add to the challenge of importing petrol from China

However, sourcing fuel from China involves more than questions of price and supply compared with imports from Russia. Differences in railway gauges are creating additional logistical difficulties.

Mongolian officials said fuel imported from China must be transferred between broad-gauge and standard-gauge railway systems, extending transport times. Part of the 140-wagon shipment, or 8,400 tonnes of AI-92, which entered Mongolia on September 29, is being unloaded at station warehouses.

Although additional supplies can be obtained from China, they cannot reach Mongolia’s market immediately or all at once. Transport and transloading capacity are affecting the speed of deliveries.

Will fuel prices rise?

Alongside supply difficulties, fuel prices are the issue drawing the greatest concern from consumers.

A price-stabilisation agreement applies to AI-92 petrol, and government agencies are monitoring whether prices may rise in light of fuel supplies and conditions on international markets. The Mineral Resources and Petroleum Authority has said AI-92 prices should not be increased under the stabilisation arrangement.

For Euro-5 fuels, market factors including the source of imports, prices and transport costs have a more direct impact. Officials said the availability of relatively inexpensive supplies from South Korea was one factor that could ease upward pressure on prices.

Public and businesses urged to conserve fuel

With supplies disrupted, residents and businesses are being urged to use fuel responsibly.

During periods of supply disruption, some companies have introduced measures such as selling fuel by coupon or only to customers using their own fuel cards. The emergency task force has asked businesses to temporarily suspend such marketing practices and distribute available products as evenly as possible based on demand.

Officials have also urged residents to use the fuel entering Mongolia economically and in line with their needs, amid pressure on supplies in global petroleum-products markets.

Mongolia targets a three-month fuel reserve

The current difficulties have highlighted not only the need to increase supplies in the short term but also the broader issue of Mongolia’s strategic fuel reserves.

Construction has begun on storage tanks with a combined capacity of 300,000 cubic metres to reduce supply risks, with the government working to commission 150,000 cubic metres of capacity in 2026. The emergency task force said a 16,000-cubic-metre tank became operational last week. Under the plan, Mongolia aims to have the capacity to build up a three-month fuel reserve by 2028.

At the same time, Mongolia is negotiating with China on stable, long-term fuel purchases. The Mongolian side has requested regular monthly deliveries of 12,000–15,000 tonnes of AI-92 from China.

New challenge of reducing dependence on a single supplier

Mongolia’s current fuel situation points to an issue broader than a short-term supply disruption. Changes in Russian deliveries are having a direct impact on the domestic fuel market, again highlighting the need to diversify import sources and strengthen the strategic-reserve system.

The government is currently working on several fronts at once: restoring normal supply from Russia, bringing in additional products from China and South Korea, speeding up rail transportation and expanding domestic storage capacity.

The immediate challenge is to replenish the 10-day AI-92 reserve through continuous new deliveries and reduce the queues facing consumers. In the longer term, diversifying fuel sources, improving transport infrastructure and building larger strategic reserves remain key to reducing Mongolia’s exposure to external supply shocks.