Confederation of Trade Unions demands urgent measures against increase in petrol price

Economy
munhzul@montsame.mn
2018-10-11 12:54:37

Ulaanbaatar /MONTSAME/. The Confederation of Mongolian Trade Unions (CMTU) demands urgent measures against the increase in petrol price and announces their suggestion of establishing ‘Risk Fund’ and making additional changes to tax legislation.

Since the start of the year, the petrol price has increased 3 times by MNT 200-300 each time, reaching MNT 2300 in some provinces, while MNT1900 in the capital. Vice President of CMTU S.Erdenebat highlighted that the reason for the increase in price is due to the increase of customs tax by USD 60-80 in Russia.

He said, “Unless the government takes urgent measures against the increase of petrol price, prices of products will increase alongside, negatively affecting the people's livelihood. The government should begin saving petrol when its price is low and sell it to the people when the price increases. During last year, it was found out that some companies falsely claimed of having ran out of petrol despite having 7,000-8,000 tons of petrol. Measures must be taken against companies like this. There are 150 companies that have the right to import petroleum into Mongolia. We believe it is best for the Bank of Mongolia to provide a certain amount of money from currency reserve so that these importing companies have a chance to make a deal.”