Fuel imports

ULAANBAATAR — The Government of Mongolia has decided to waive customs duties on AI-92 gasoline and diesel imported through the Zamiin-Uud, Bulgan and Shiveekhuren border ports in an effort to diversify fuel supply sources and transport and logistics routes.

The decision was made at a Cabinet meeting on October 7, 2026. Fuel imported through the three ports will be eligible for the tax relief, a measure intended to expand potential entry points for fuel and improve import logistics.

According to the government, the decision forms part of a broader policy to diversify fuel import sources and strengthen supply security. Mongolia remains heavily dependent on imports of refined petroleum products, leaving the country vulnerable to disruptions in foreign supply and transportation.

Diversifying import routes

The three ports are located along different trade and transport corridors. Zamiin-Uud is one of Mongolia’s main trade gateways to China, while the Bulgan and Shiveekhuren ports also play important roles in cross-border commerce. Greater use of these routes could give importing companies additional transport options.

Waiving customs duties could reduce the tax component of the cost of eligible fuel imports. However, the measure’s actual impact on the domestic market will depend on supplier prices, transport costs, exchange rates, other related charges and suppliers’ pricing policies.

Based on the government’s announcement, it is not possible to conclude that retail prices will fall immediately or that fuel shortages will be eliminated entirely.

Implications for energy security

A stable fuel supply is strategically important to Mongolia’s mining, transport, agriculture and construction sectors. Petrol and diesel are essential for transporting mineral exports, operating heavy machinery and maintaining logistics across the country’s vast territory.

The impact of the decision will depend on whether importers can draw additional supplies through the three ports, whether transport infrastructure can handle the increased traffic, and how quickly fuel can reach the domestic market.

For businesses, the decision signals that Mongolia is seeking to expand its fuel import options and reduce vulnerabilities in the supply chain. The policy’s effectiveness will need to be assessed through future changes in import volumes, transport times and domestic supply.