Diesel price plummets by K450 per litre in two days

The fuel market saw a sudden downtick in the price of diesel by K450 per litre within two days.
On 14 September, fuel prices stood at K2,485 per litre for Octane 92, K2,575 for Octane 95, K3,065 for diesel and K3,150 for premium diesel.
The prices slid to K2,365 per litre for Octane 92, K2,455 for Octane 95, K2,615 for diesel and K2,700 for premium diesel.
The figures showed a decrease of K120 per litre of Octane 92 and Octane 95 and K450 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 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