Mongolia is temporarily limiting fuel sales as it faces growing pressure from global energy supply disruptions, Minister of Energy and Mineral Resources G.Damdinnyam announced on August 3. Due to the challenging external environment, the Ministry has introduced temporary restrictions on fuel purchases starting August 4. Under the new arrangement, fuel purchases will be limited to no more than 50,000 MNT per vehicle, with access determined by the even-odd license plate system. For example, vehicles with odd-numbered plates will be eligible to purchase gasoline on August 5.
The minister said that despite ongoing geopolitical tensions, Russia had previously maintained a relatively stable fuel supply. However, global energy markets have recently faced severe disruptions due to geopolitical conflicts, including the closure of the Strait of Hormuz following tensions between the US and Iran, which affected international oil transportation and refined petroleum product supplies.
According to G.Damdinnyam, the global energy situation has reached an unprecedented level, with the World Energy Organization warning of a major oil and energy crisis. He added that continued drone attacks on Russian energy infrastructure have contributed to fuel shortages in Russia, where some regions are experiencing supply difficulties and restrictions have been introduced for consumers. Russia has decided to suspend gasoline exports until January 1, 2027, while diesel fuel exports have also been temporarily restricted. At the same time, Russia has begun importing jet fuel from other countries to meet domestic demand.
Minister G.Damdinnyam also noted that the country’s petroleum consumption has been increasing by approximately 14 percent annually, largely due to rapid growth in the mining sector. In 2025, the nation consumed around three million tonnes of petroleum products annually, while in the first seven months of 2026, consumption reached approximately 1.8 million tonnes. AI-92 gasoline accounts for about 30 percent of total fuel consumption, while diesel fuel makes up 63.5 percent.
The government is currently negotiating with multiple countries to secure additional fuel supplies. Discussions have been held with Kazakhstan, although transportation and logistics challenges have prevented immediate supply arrangements. Negotiations are now underway with China and Singapore.
G.Damdinnyam emphasized that Mongolia has long discussed the need to establish strategic fuel reserves but failed to implement the plan for two decades. He said that after taking office in June 2025, the Government renewed efforts to address the issue. The budget for the construction of a large-scale fuel storage facility was approved on December 30, 2025, and construction began in March. The facility will have a total storage capacity of 300,000 tonnes. A 150,000-tonne storage unit is expected to become operational within this year. According to the Minister, maintaining a three-month fuel reserve would allow the country to withstand a temporary supply disruption of up to 40 percent without major difficulties.
The minister also reported that negotiations are underway to secure crude oil supplies for the oil refinery currently being constructed in Dornogovi Province with a concessional loan from the Government of India. He said Kazakhstan could potentially supply up to one million tonnes of crude oil annually if transportation and logistics issues are resolved.
On top of that, State Secretary of the Ministry of Industry and Mineral Resources B.Dashpurev reported on August 4 that 49 railway tank cars carrying AI-92 gasoline arrived overnight and were unloaded at Darkhan and Ulaanbaatar railway stations. Fuel distribution will continue around the clock, while an additional 20 tank cars are currently being transported. Authorities said customs clearance procedures will be accelerated to ensure the fuel reaches consumers as quickly as possible. B.Dashpurev noted that Ulaanbaatar normally has around 700,000 vehicles participating in daily traffic, while the current number has decreased to approximately 350,000 vehicles. He said traffic congestion has not increased despite the fuel supply concerns.
