The opposition Democratic Party (DP) criticized the government over the ongoing fuel shortage and alleged misuse of state support in the agriculture sector. MP L.Munkhbayasgalan accused Minister of Industry and Mineral Resources G.Damdinnyam of failing to take effective measures to address the fuel shortage, which she said has persisted for three months. She also criticized a government-backed lending scheme that provides subsidized loans to fuel importers for constructing petroleum storage facilities.
According to L.Munkhbayasgalan, parliament approved the Law on Supporting the Supply of Strategically Important Products last December, creating a mechanism for fuel-importing companies to access up to 500 billion MNT in loans through commercial banks. She said interest rates initially set at 13.5 percent rose to around 18 percent after additional bank fees and risk premiums, before being reduced to nine percent through interest subsidies financed by the state budget. She claimed that 20 billion MNT was allocated from the 2026 state budget for such subsidies, with several fuel-importing companies receiving loans through commercial banks. L.Munkhbayasgalan questioned the necessity of using public funds to finance additional storage capacity, arguing that Mongolia already has facilities capable of holding approximately 45 days’ worth of fuel consumption.
She further alleged that the country’s fuel import market, estimated at around 2.5 billion USD annually, has created conditions for market concentration and inflated prices. L.Munkhbayasgalan characterized the government’s policies as indirect financial support for the ruling Mongolian People’s Party (MPP), alleging that they could be used to generate political funding.
DP also raised concerns over alleged irregularities in government support and subsidies provided to the food, agriculture and light industry sectors. The party cited findings presented during a parliamentary oversight hearing organized by the Standing Committee on Environment, Food and Agriculture. According to DP representatives, an expert assessment found that productivity in these sectors had not improved, employment had declined by approximately 31,000 jobs and dependence on imports had increased fivefold. They also alleged that 13 companies with the same ownership structure received 18 billion MNT in wheat subsidies, while 30 companies that allegedly submitted falsified documents received 562 million MNT. The party said these figures were based on an assessment covering only 37 percent of the reports and information submitted by companies that received government loans and support, arguing that the scale of alleged misuse could be significantly greater if all relevant information were made public.
Meanwhile, the DP’s Political Council convened at the State Palace, where Party Chairman O.Tsogtgerel briefed reporters on the meeting’s decisions. He said the council discussed holding the MPP-led government accountable and the ongoing parliamentary debate over the state budget and public finances. O.Tsogtgerel criticized what he described as continued internal conflict within the ruling party, saying that political disputes within MPP were increasingly affecting the government and the public. He also said DP was concerned about attempts to attribute the government’s problems to the opposition. DP has called for the prime minister to seek a vote of confidence in parliament. O.Tsogtgerel said the issue of whether to seek the PM’s resignation would be discussed and finalized at an upcoming meeting of the party’s parliamentary group. He reiterated DP’s position that household incomes should be protected and increased, including through higher wages and pensions, while unnecessary government spending should be reduced. He added that DP lawmakers would actively participate in parliamentary discussions aimed at approving the state budget on schedule.
