Mongolia's fuel prices surge as Russian supply crunch deepens

Mongolia is experiencing fuel shortages, long lines at gas stations and rationing as disruptions in Russia, its dominant gasoline and diesel supplier, spill across the border. Ukrainian drone attacks on Russian refineries and strong seasonal demand have tightened supplies, pushing Mongolian fuel prices to about $1.50–$2 per liter from roughly $1 in the spring. Although an intergovernmental agreement exempts Mongolia from Russia’s fuel-export restrictions, deliveries have not fully shielded the country from market instability; Russian diesel exports to Mongolia rose 7% from January through July, while July motor-fuel shipments declined from June. The squeeze is exposing Mongolia’s dependence on Russia and raising concerns about energy security, even as leaders from both countries reaffirmed their strategic partnership. Mongolia may also reduce imports of Russian grain after an anticipated stronger domestic harvest.