Mongolia Signs Deal to Buy 78,000 Tons of Fuel from Russia

ULAANBAATAR — Mongolia has signed an agreement to purchase a total of 78,000 tons of gasoline from Russia to stabilize fuel supplies, Minister of Industry and Mineral Resources G. Damdinnyam said on October 5. The deal comes as fuel supplies decline and demand at filling stations rises in Ulaanbaatar and the provinces.

Mongolia consumes approximately 75,000 tons of AI-92 gasoline each month. However, imports stood at around 54,000 tons in August and 62,000 tons in September, both below normal monthly consumption. As a result, long queues formed outside fuel stations from late September, disrupting the daily travel of residents in the capital.

For October, Mongolia plans to import a total of 260,000–270,000 tons of petroleum products, including confirmed orders for 77,000–78,000 tons of AI-92 gasoline. The supplies will come from Russia and other suppliers, while arrangements are also being made to secure winter diesel fuel.

Mongolia’s fuel market is highly dependent on supplies from Russia. Officials say declining supply volumes in recent months have created a gap between demand and supply in the domestic market. Mongolia consumes approximately 230,000 tons of petroleum products per month in total, including gasoline, diesel and other products.

The fuel supply situation also involves distribution problems, not just import volumes. The government’s Emergency Task Force has instructed relevant agencies to monitor the operations of filling stations and investigate whether large quantities of fuel are being allocated under the names of contracted organizations or being resold.

The fuel shortage has prompted protests and demands from residents. On October 1, motorists held a demonstration in Ulaanbaatar over fuel supplies, prices and rising costs for consumer goods and services, disrupting traffic on some roads in the city center.

The government is also focusing on diversifying fuel sources. In addition to supplies from Russia, it is examining the possibility of sourcing fuel from China, South Korea and other countries, and has begun discussions on the possibility of importing fuel and aviation fuel from Belarus.

Stabilizing fuel supplies is important for Mongolia’s economy across a wide range of sectors. Fuel availability is directly linked to the costs of mining, coal transportation, agriculture, construction, public transport and the distribution of goods. Ensuring that the fuel ordered for October arrives on time and restoring normal distribution have therefore become key factors in maintaining domestic economic activity.