Excise tax on fuel is reduced

The special meeting of the Government on June 10 decided to reduce excise tax on fuel with effect from June 15. The tax on A-80 coming through border points at Sukhbaatar, Zamiin-Uud, Ereentsav and Altanbulag has been reduced from MNT170,000 per ton to MNT80,000. The tax on AI-92 has been reduced from MNT230,000 per ton to MNT100,000 and that on diesel remains totally abolished. However, the rates applicable to petroleum and diesel coming through remote border points have not been changed.

The Government hopes the measures would help keep fuel prices stable. However, it is now clear Rosnefti LLC of Russia will not be able to export sufficient petroleum and diesel and other companies of Russia and China are being approached. Rosnefti’s rates per ton for June supplies are USD118 for A-80, USD123 for AI-92 in and USD68 for diesel. It will supply 8,000 tons of AI-92 while Mongolia’s monthly need is 20,000 tons.

Posted in: mongolian economy