Diesel price slightly dips in domestic market

Diesel price slightly decreased to K2,400 per litre of diesel and K2,445 per litre of premium diesel on 29 March.
The prices stood at K2,435 per litre of diesel and K2,480 per litre of premium diesel on 28 March.
Domestic fuel prices are closely tied to 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 diesel oil prices hit the highest of K3,245 for premium diesel and K3,330 for diesel in August 2023.
The committee is, therefore, steering the market to ensure price stability and fuel oil security. Under the supervision of the committee, the Petroleum Products Regulatory Department has been issuing daily reference prices to ensure price stability for energy consumers.
The committee is inspecting the fuel stations to see whether they are overcharging. 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. Domestic fuel prices are highly correlated with international prices. The State is steering the market to mitigate the losses experienced by 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’s. However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent cheaper than those of Myanmar. Every country lays down different policy patterns to fix 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/EM