September 22, 2022
The prices of fuel oil indicated a slight increase in prices, according to the fuel market.
On 20 September, the prices stood at K2,170 per litre for Octane 92, K2,260 for Octane 95, K2,585 for diesel and K2,670 for premium diesel. On 21 September, the prices increased to K2,290 for Octane 92, K2,370 for Octane 95, K2,745 for diesel and K2,830 for premium diesel in Yangon markets.
The figures showed an increase of K110-120 per litre of Octane 92 and Octane 95 and K160 per litre of diesel and premium diesel respectively.
The domestic fuel prices are following the decline in the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
The committee is steering the oil sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers.The Petroleum Products Inspection and Supervision 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