18 June
The domestic fuel oil market shows a slight increase in oil prices this month compared with late April, according to the local oil market.
At present, fuel oil was pegged at K450-490 for Octane 92, K580-600 for Octane 95, K520-550 for diesel and K530-560 for premium diesel on 17 June according to the data released by Myanmar Petroleum Trade Association.
“Oil prices plunged in recent days. However, it is increasing now. Domestic oil prices depend upon the world market. There’s nothing more than this,” Chairperson Dr Win Myint of Myanmar Petroleum Trade Association told the Global New Light of Myanmar yesterday.
The figures reflect an increase of K60-100 per litre compared with the prices registered in April.
The oil and gas sector has been crashed during coronavirus outbreak. Oil price went negative on 20 April as there is no place to store all the crude the world is producing, but not using. The global market was broken, leading domestic oil price plunge to more than 50 per cent in April against January’s prices.
Oil markets are recovering from the collapse in demand caused by the pandemic, but fully recovering may not materialize until 2022, the global market observer reported.
For now, oil markets remain highly fickle depending on the coronavirus impacts and demand. In the global markets, oil prices stood at around US$40.5 per barrel for Brent oil and $37.8 per barrel for WTI crude oil on 17 June 2020.
On 8 January 2020, domestic oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Then, the prices in the domestic market have been extending its drop.
On 22 April 2020, the oil prices touched a low of K310-330 per litre for Octane 92, K440-455 for Octane 95, K445-465 for diesel, and K455-475 for premium diesel, according to the domestic oil market.
On 10 October 2018, due to an increase in global crude oil prices and the weakening of the Kyat against the US dollar, oil prices had touched a high of K1,065 per litre for Octane 92, K1,115 for Octane 95, K1,085 for diesel, and K1,105 for premium diesel.
Myanmar imported nearly $1.8 billion worth 3.3 million tonnes of diesel and gasoline over the past seven months (Oct-Apr) of the current fiscal year, showing an increase of 400,000 tonnes valued $56 million compared to the corresponding period of last year, according to the Ministry of Commerce.
Between October and April of the current fiscal, Myanmar imported $1.14 billion worth 2 million tonnes of diesel and 1.3 million tonnes of gasoline with an estimated value of over $740 million, as per data of the Commerce Ministry.
Ninety per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally.
Normally, Myanmar imports fuel oil primarily from Singapore, with monthly volumes touching 200,000 tonnes for gasoline and 400,000 tonnes for diesel. There are about 2,000 fuel stations and over 50 oil importer companies in Myanmar.
Ko Htet (Translated by Ei Myat Mon)
