Fuel price regains to above K2,000 per litre

The price of Octane 92 rose again to above K2,000 per litre in the domestic fuel oil market.
On 13 December, the prices declined below K1,795 per litre for Octane 92, K1,885 for Octane 95, K2,130 for diesel and K2,205 for premium diesel. Thereafter, the prices gradually moved up and stood at K2,030 per litre for Octane 92, K2,100 for Octane 95, K2,415 for diesel and K2,495 for premium diesel on 28 December.
The figures showed an increase of K200-K300 per litre within 15 days.
The domestic fuel prices are following the increase in 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.
Tracking the MOPS’ price index, the prices peaked at K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel in late August
The committee is steering the oil sector effectively not to have a shortage of oil in the domestic market and ensure price stability for energy consumers.
The committee is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate is set on the MOPS’ price assessment, shipping cost, profit margin, premium insurance and other general costs.
The rates for regions and states other than Yangon are evaluated after adding the transport costs 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.
The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate.
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 that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. — NN/EMM