Mongolia fuel shortage exposes Russia reliance

Mongolia is facing prolonged fuel shortages and long queues at petrol stations, exposing the landlocked country's dependence on Russian supplies.

Mongolia, which sits between Russia and China, has historically imported more than 95 percent of its petrol from Russia. Ukrainian strikes on Russian oil facilities have disrupted supplies in recent months, depleting limited Mongolian stockpiles and raising concerns about energy security.

Drivers have waited hours for fuel, while shortages have affected logistics, raised costs and disrupted summer travel. Nasanjargal, a pensioner and former police officer, said he drove out of Ulaanbaatar hoping rural areas would have fuel, but found the same queues.

The government has tried to manage demand through daily individual fuel-purchase caps, a ban on stockpiling and an alternating licence-plate scheme to reduce the number of cars filling up.

The shortage is also affecting rural and tourism-dependent regions. Munkhchuluun Samdannyam, governor of central Dundgovi province, said his local government's first priority was fuel for tourists and herders. He said herders in the Gobi Desert rely on petrol-powered motors and pumps to draw water from wells.

Telmen Altanshagai, an independent policy analyst specialising in Mongolia's energy security, said the crisis has pushed the government to import fuel from South Korea and China and to hold talks with Kazakhstan on petroleum trade. She said those steps do not answer the broader question of dependence on foreign providers.

Mongolia is working on its first domestic oil refinery, with operations targeted to begin in 2028. Prime Minister Nyam-Osor Uchral, in office since March, said last month that he was fully responsible for overseeing the oil industry.

Diesel-powered trucks remain central to Mongolian logistics. Truck driver Enkhbayar Myanganbayar said diesel prices had risen over the past 15 days from about 4,000 to 4,200 tugrik per litre to more than 4,600 and nearly 4,700 tugrik per litre.

Some drivers are using an online platform to share real-time information about fuel availability, prices and waiting times, but many pumps have closed or limited service.