Domestic fuel price decreases by around K100 per litre

The domestic fuel prices fell back to K1,700 per litre of Octane 92, according to the fuel oil market.
On 1 August, oil prices stood at K1,820 per litre for Octane 92, K1,890 for Octane 95, K2,195 for premium diesel and K2,135 for diesel. The prices slid to K1,680 for Octane 92, K1,740 for Octane 95, K2,090 for premium diesel and K2,030 for diesel on 5 August.
The figure shows a decrease of K100 per litre within four days.
The price decline is followed by the price set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in Southeast Asia. Singapore MOPS price has rolled back for now.
The Supervisory Committee on Import, Storage and Distribution of Fuel Oil is governing the fuel storage and distribution sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers.
The Petroleum Products Supervision and Inspection 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 compared to 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 poses only a lower tax rate on fuel oil and arranges for energy consumers to buy the oil at a cheaper rate. — NN/GNLM