Berliner Boersenzeitung - Mongolians wait hours for fuel as reliance on Russia bites

"Fuel is unavailable, there are huge queues everywhere," he told AFP from his motionless Toyota sedan after a one-and-a-half hour drive from the capital Ulaanbaatar.

Sandwiched between Russia and China, landlocked Mongolia has historically imported more than 95 percent of its petrol from its vast northern neighbour.

But Ukrainian strikes on Russian oil facilities have disrupted supplies in recent months, triggering a relentless fuel shortage that has depleted Mongolia's limited stockpiles and raised questions about its energy security.

The shortages have roiled logistics, lifted costs and ruined the plans of many Mongolians accustomed to taking advantage of the short summer season with a road trip in the picturesque countryside.

Nasanjargal, a former police officer who goes by one name, said he was "out of options".

"I headed out this way hoping things might be better out in the rural areas," he said, his young granddaughter shifting impatiently in the back seat.

"It's the same story everywhere."

- Energy insecurity -

The prolonged crisis has increased pressure on Mongolian authorities to ensure unfettered supply of fuel.

Government responses have included daily individual caps on fuel purchases, a ban on stockpiling and an alternating licence-plate scheme intended to reduce the number of cars filling up.

But the rationing has frustrated many ordinary citizens, with Nasanjargal telling AFP that the lines are "very troublesome and extremely difficult overall".

Beyond crowded Ulaanbaatar -- notorious for its daily traffic -- fuel shortages present other challenges for rural, tourism-dependent regions.

Munkhchuluun Samdannyam, the governor of central Dundgovi province, told AFP that his local government's "first priority" was the needs of tourists and herders.

"Under Gobi (Desert) conditions, herders do not draw water from wells by hand. They mostly use motors and pumps.

"And to operate those motors, gasoline is necessary," Munkhchuluun said on the sidelines of an international summit on desertification hosted by Mongolia last month.

"For everyone else, we are trying to manage and coordinate the situation as best we can," he said.

- Diversifying -

Mongolia's vast size and relatively small population of 3.6 million means that the government has limited resources for building the necessary infrastructure, Telmen Altanshagai, an independent policy analyst specialising in Mongolia's energy security, told AFP.

"As geopolitics shifted, the country started talks with Kazakhstan on the trade of petroleum products," Telmen said.

"More recently, the current crisis forced the government to import fuel from South Korea and China," she added.

But as diversification of imports becomes a political imperative, Telmen said, "it doesn't address the fundamental question of energy dependency" on foreign providers.

In a potential breakthrough for Mongolia's energy security, work is under way on the country's first domestic oil refinery, with operations targeted to begin in 2028.

Prime Minister Nyam-Osor Uchral, in office since March, has staked his reputation on his government's ability to manage the crisis, saying last month that he was "fully responsible for overseeing the oil industry".

- Rising costs -

Telmen told AFP that any long-term solution must involve electrification of transport.

But in bustling Ulaanbaatar, electric-vehicle charging infrastructure remains limited, let alone across the vast, sparsely populated steppe.

The country's logistics still rely heavily on diesel-powered trucks, leaving freight operators vulnerable to disruptions that have been increasingly acute this summer.

They have also raised costs for operators of logistics networks.

"When I came into the city yesterday, fuel was virtually impossible to find," said Enkhbayar Myanganbayar, a 25-year-old truck driver.

"Regarding diesel fuel prices, in just the past 15 days, prices jumped," he said.

"Previously, it cost around 4,000 to 4,200 tugrik ($1.11-$1.17, per litre), but now it's over 4,600 and pushing close to 4,700 tugrik."

The volatile supply situation has weighed on ordinary drivers, with prices and availability fluctuating at each petrol station across the country.

In one grassroots effort to ease headaches, an online platform has been created to allow users to upload real-time updates on availability, prices and waiting times.

But many pumps have simply closed up.

When AFP returned to the petrol station where Nasanjargal had been waiting two days later, it was only open to emergency vehicles.

(K.Müller--BBZ)