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Mongolia imports 100% of its domestic demand for refined petroleum products (gasoline, diesel etc.). Despite global fuel prices fluctuating significantly in recent years, domestic prices have fluctuated relatively less thanks to government interventions. However, continued rises in global oil prices have made it difficult for the government to maintain stable domestic prices during fiscal consolidation (see Policy Brief 175). A team of local PEP researchers evaluated possible fuel price subsidy policies and how they are likely to impact the Mongolian economy as global prices continue to rise. Their findings indicate that without fuel price subsidies, poverty will increase and become more severe. Find out more about the research methods, findings and policy recommendations in the following PEP publications:

Country: 
Mongolia
Project code: 
MPIA-19906
Image: 

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