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Mongolia buys Russian oil www.energynews.pro
Russian oil companies, affected by the Western measures, are offering massive discounts to their customers. This is the case of Mongolia, which obtained an agreement to buy gasoline at a reduced price from the company Rosneft. Thus, the agreement guarantees the Russian company an export of refined products while the market is shrinking considerably.
Agreement between Mongolia and Rosneft
Rosneft specializes in oil extraction, processing and distribution. It is the second largest oil producer, after Gazprom.
The negotiations between Mongolia and Rosneft will allow the country to offer gasoline at retail prices 35% below the market price. As a result of the agreement with Rosneft, the Mongolian government will be able to reduce the price pressure on its citizens. In fact, Mongolia will pay $840 per ton of Al-92 gasoline or about $99.4/bbl.
The selling price of fuel in Mongolia will be offered at 2,390 Togrog/liter, equivalent to 76 cents, until the end of 2022. This is about 1,340 Togrog/liter (43 cents) less than the market price.
According to Yondon Gelen, Minister of Mines and Heavy Industry:
“The significant reduction we are able to secure through the end of the year will protect consumers and businesses and help strengthen Mongolia’s recovery from the COVID-19 pandemic.”
In fact, the significant reduction in prices until the end of the year will help ease the cost of living in the country.
This decision also underlines Russia’s strategy to offer gasoline at reduced prices. Because of the sanctions, it wants to secure outlets for its oil exports.
Published Date:2022-07-23
