Three petroleum importing companies, Magnai Trade, Sod Mongol, and Tes Petroleum have been deliberately limiting sale of petroleum products at their filling stations, found the Authority for Fair Competition and Consumer Protection (AFFCP).

“After we received information about several petrol stations deliberately limiting their sales, an investigation was launched. The result of the investigation found that Magnai Trade, Sod Mongol, and Tes Petroleum were creating a shortage of petroleum at certain branches,” said Ts.Terbish, head of the Competition Policy Coordination at AFCCP.

Out of the 100 branches of Tes Petroleum nationwide and the 26 in Ulaanbaatar, six had been found to be limiting the sale of petroleum. The AFFCP investigation found that branch number one and branch number five of Tes Petroleum had been capping the sale of A-92 (92 octane petrol) and diesel fuel at 30,000 MNT.

In addition, Magnai Trade and Sod Mongol were found to be capping the sale of A-92 and diesel fuel at 100,000 MNT at its branches in the outskirts of Ulaanbaatar. AFCCP has stated that it will conduct a more detailed investigation into the matter.

Inspector of AFCCP B.Narantsetseg denied recent rumors that the reserve of petroleum was low.

“As of December 26, nationwide, there is a total petroleum reserve of 38 days. Specifically, A-80 has a reserve of 68 days, A-92 has a reserve of 48 days, and diesel fuel has a reserve of 28 days. In Ulaanbaatar, A-80 fuel is being sold on average for 1,470 MNT, A-92 for 1,640 MNT, and diesel fuel for 1,720 MNT,” B.Narantsetseg said.

As a result, a potential shortage of reserves has been eliminated as a possible justification for any limit on sales.

Large fuel importing companies have not denied the possibility of an increase in the price of fuel due to the possibility of the excise tax on fuels increasing in 2018. The decision to revert the fuel tax back to its original levels in 2015 stage-by-stage has been postponed two times, on July 1 and October 1.

The investigation by AFCCP found that other large fuel importing companies such as Shunkhlai LLC and Petrovis LLC have not limited their supply and has advised the public to not panic and also not to stock excess fuel.

vA more detailed investigation into the matter will look into the legality of the move by fuel importing companies to limit supply of fuel, said AFCCP.


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