Mongolia Weekly: Fuel taxes stay zero, event funding suspended, $6.5bn steppe plan proposed
August 1, 2026 to August 7, 2026 --- 1. Government Sets Fuel Taxes at Zero Through Feb. 1, 2027 and Reports Supply Gap The government set excise duty on gasoline and diesel, and import customs duties on all fuels, at zero through February 1, 2027 to limit domestic price rises. On August
August 1, 2026 to August 7, 2026
1. Government Sets Fuel Taxes at Zero Through Feb. 1, 2027 and Reports Supply Gap
The government set excise duty on gasoline and diesel, and import customs duties on all fuels, at zero through February 1, 2027 to limit domestic price rises. On August 5, stocks stood at 11 days for AI-92, 13 for AI-95, 18 for diesel and 10 for aviation fuel. Reported contracts total 273,390 tonnes, while the August import plan is 270,910 tonnes, a 2,480-tonne discrepancy not reconciled in the evidence.
Local Coverage: ikon.mn, zarig.mn, eagle.mn, isee.mn, urug.mn, news.mn, unuudur.mn
From daily briefs: 2026-08-01, 2026-08-02, 2026-08-03, 2026-08-05, 2026-08-06
2. Government Will Submit 2026 Budget Revision After Preliminary 2.1-Trillion-Togrog Deficit
Finance Minister Z. Mendsaikhan said the government will submit a 2026 budget revision to parliament in September alongside the 2027 budget bill. First-half revenue of 14.6 trillion togrog and expenditure of 16.7 trillion togrog produced a preliminary 2.1-trillion-togrog deficit. The revision will protect salaries, pensions, emergency services, health and education, while reducing lower-priority operating costs for expected savings of about 40 billion togrog. It will also support strategic reserves of meat, wheat and vegetables, including concessional financing for storage.
Local Coverage: ikon.mn, isee.mn, news.mn, eagle.mn
From daily brief: 2026-08-06
3. Government Suspends Nonessential Event Funding and Cancels Planned Travel
Prime Minister Uchral announced an austerity resolution suspending funding for nonessential forums, meetings, celebrations, anniversaries, festivals, sports and public events through December 31, 2026. Activities required by law, government decisions or international agreements, including COP17, are excluded. Planned official travel is cancelled except for senior officials and government-approved meetings connected to international treaties and conventions; necessary meetings must be online. Budget managers must cut current spending by 20 percent while protected spending continues.
Local Coverage: eagle.mn, ikon.mn, isee.mn, urug.mn, urug.mn
From daily brief: 2026-08-06
4. Dornogovi Oil Refinery Is Scheduled to Open in 2028, Three Years Late
Construction of the Altanshiree, Dornogovi refinery is now scheduled for commissioning in 2028, three years later than its initial 2025 plan. India’s government is financing the project with a USD 1.7 billion concessional loan, and pandemic-related work stoppages, inflation, logistics, construction time and specially ordered equipment increased costs; inflation required an additional USD 460 million. Designed capacity is 1.5 million tonnes of crude annually, but domestic crude output must increase before operation.
Local Coverage: news.mn
From daily brief: 2026-08-02
5. Oyu Tolgoi Commissions Switchyard Supporting Up to 80 MW of Winter Power Imports
Oyu Tolgoi LLC commissioned a 220-kV switchyard at Khanbogd, Umnugovi Province, on August 3, enabling parallel operation between the central power system and Inner Mongolia Autonomous Region’s system and creating technical capacity to import up to 80 MW during winter peaks. The supplied reports call it the Zes-Oyu outdoor switchyard and the Tses-Oyu switching facility. Oyu Tolgoi funded its six bays and three-kilometre overhead line; the Energy Ministry says it could serve southern users and ease pressure on the central grid.
Local Coverage: news.mn, ikon.mn, unuudur.mn
From daily briefs: 2026-08-04, 2026-08-05
6. Government Prepares Franklin Templeton Cooperation for State-Owned Enterprise Reform
The government is preparing cooperation with Franklin Templeton to accelerate state-owned-company reform, align governance with international standards and consolidate the companies under the National Investment Fund. The preparatory plan also calls for readying enterprises for public offerings and listings on Mongolian and international exchanges. The September 15 Mongolia Investment Forum in London, organized by Capital Markets Mongolia with the Mongolian Stock Exchange as strategic partner, will include registered participants from the London Stock Exchange, Franklin Templeton and major financial institutions.
Local Coverage: unuudur.mn
From daily brief: 2026-08-01
7. Jade Gas Aims for Early 2027 Drilling if Financing Is Completed
ASX-listed Jade Gas Holdings aims to finalize a financing agreement by September for its Tavan Tolgoi coal-bed methane project. If it is completed, the company plans to start production drilling in early 2027; engineering, logistics and construction preparations could begin in 2026 if a final deal is reached by the end of the current quarter. A PT Beijing Energy Linking, PetroChina and Hunan Geology & Mining Technology consortium has proposed USD 762.5 million, or AUD 1.1 billion, to fully finance phase one, planned for 175 wells and up to 10 rigs in the second and third quarters of 2027.
Local Coverage: isee.mn
From daily brief: 2026-08-05
8. Battsetseg Presents Proposed Steppe Plan Seeking USD 6.5 Billion at COP17
Foreign Minister B. Battsetseg presented Mongolia’s proposed Steppe Plan to a government meeting for international presentation at COP17 in Ulaanbaatar on August 17-28, 2026. The national strategy contains three initiatives: pasture priority, integrated water and land management, and sustainable infrastructure using nature-based solutions. It seeks USD 6.5 billion for 292 projects. Reports also state average financing of USD 700,000 per project, a figure that conflicts with the stated aggregate financing and project count. COP17 will serve as Mongolia’s platform to present the document internationally.
Local Coverage: isee.mn, urug.mn
From daily brief: 2026-08-06
9. Ulaanbaatar Targets 95% Measles Vaccination Coverage by Nov. 25
Ulaanbaatar health authorities aim to reach 95 percent measles vaccination coverage across all nine districts by November 25, using local microplans intended to reduce transmission and prevent a further outbreak. Mongolia had recorded 15,560 cases and 22 deaths nationally by August 4; Ulaanbaatar accounted for 12,419 cases and three people were in hospital treatment. Health agencies, the World Health Organization and local providers plan to intensify catch-up vaccination in late August before schools and kindergartens reopen.
Local Coverage: unuudur.mn, news.mn, zarig.mn
From daily briefs: 2026-08-01, 2026-08-03, 2026-08-04, 2026-08-06
10. Government Approves Single-Source Procurement Rules for Medicines and Vaccines
The government approved rules allowing direct, single-source purchases of commonly used, essential, high-cost and supply-interruption-risk medicines, medical supplies, biologics and vaccines. Health Minister E. Batshugar said purchases may be made in bulk directly from manufacturers in countries meeting World Health Organization stringent regulatory standards or through systems such as UNICEF. The government expects fewer intermediaries to reduce costs and support stable supplies of quality-assured products; reports said earlier direct purchases saved MNT 3.15 billion.
Local Coverage: eagle.mn, isee.mn, ikon.mn, urug.mn
From daily brief: 2026-08-06