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Fuel reserves dip again

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Fuel reserves dip again

Queues have reappeared at Ulaanbaatar filling stations after national fuel reserves slipped from an 11-day supply back down by one or two days, the Fuel Emergency Task Force reported at a briefing on September 25, blaming reduced shipment volumes from Russia. 

State Secretary of the Ministry of Industry and Mineral Resources B.Dashpurev mentioned that 987 tonnes of fuel were distributed to 105 filling stations in Ulaanbaatar and 815 tonnes of AI-92 petrol to 82 rural stations over the past 24 hours. He said 162 tank cars, carrying 9,720 tonnes of AI-92 petrol, remain within the Ulaanbaatar Railway system, with a further 32 tank cars ready at unloading stations. 

B.Dashpurev added that 18,000 tonnes of petrol ordered from Russia had yet to arrive with five days left in the month. A separate 8,000-tonne order from China has reached Zamiin-Uud station, where transshipment is under way.

Asked how long the queues would last, B.Dashpurev replied that reserves had been built up to a 42-day supply between April and June to meet rising domestic tourism demand, but fell to as low as six days after shipments from Russia dropped amid the war there, forcing people nationwide into overnight queues. 

He informed that the government is negotiating through all available channels to secure Russian volumes that meet standard consumption needs, while also pursuing imports from South Korea and China. Mongolia has already imported 2,000 tonnes of diesel from South Korea, he said, and finalized a deal to bring in 18,000 tonnes of petroleum products from China this month, including 8,000 tonnes of Euro-5 grade AI-92 petrol currently being shipped.

Imports averaged 38.3 tank cars a day in August after Mongolia pushed for higher volumes following supply disruptions, but the average fell to 33 tank cars in September, leaving the country only just able to meet consumption needs. The incoming 18,000 tonnes from Russia and 8,000 tonnes from China should prevent further disruptions for the rest of the period. There are no queues for Euro-5 or AI-95 grade fuel in Ulaanbaatar, but queues have formed for the cheaper standard AI-92 Euro-2 grade, and the government would increase procurement of Euro-2 fuel for the remainder of the period, according to B.Dashpurev. 

 

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