Fuel market sees slight decline in prices

 

August 19

 

Fuel prices dipped in the domestic market these days, according to the fuel price market.

 

On 16 August, the prevailing fuel prices stood at K2,365 per litre for Octane 92, K2,445 for Octane 95, K2,780 for premium diesel and K2,700 for diesel, whereas fuel prices decreased to K2,290 per litre for Octane 92, K2,370 for Octane 95, K2,760 for premium diesel and K2,685 for diesel on 18 August, showing a slight decline of K15-75 per litre.

 

The Supervisory Committee on Fuel Oil Import, Storage and Distribution stated that domestic fuel price is due to the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in Southeast Asia.

 

Additionally, the drop in fuel prices and Kyat depreciation against the US dollar are contributing factors to the price fluctuation.

 

The Central Bank of Myanmar set the reference exchange rate for a dollar at K2,100, whereas the exchange rate against the US dollar hit K2,800 in the grey market.

 

The fuel price experienced an upward spiral in recent days when Kyat devalued at K3,000 against the dollar. Some fuel stations in regions and states faced short of supply.

 

However, some petrol stations are allegedly suspending fuel sales and setting limited sales on the possible shortage of fuel oil, sparking consumers’ concerns and raising fuel prices. They are taking advantage of the consumers’ concerns for their benefits, according to the statement released by the Central Committee on Ensuring Smooth Flow of Trade and Goods on 16 August.

 

The committee has assured adequate fuel supply until this month. It is also working together with Myanmar Petroleum Trade Association to ensure a steady fuel supply in order for the energy consumers to mitigate concerns.

 

Therefore, the consumers can complain about the halt in fuel sales and limited sales through the contact numbers of the respective regions and states if they find those stations that violate the rules, the committee stated.

 

The committee is governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers.

 

The Petroleum Products Regulatory Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and health profit per cent.

 

The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily cover on the state-run newspapers and are posted on the media and official website and Facebook page of the department on a daily basis starting from 4 May.

 

As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries.

 

Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than in Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also poses only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. — NN/GNLM