The price of oil has continued to decline in the domestic market on weak cues from the global oil market, which is bracing for a price slump, and the US dollar’s depreciation against the Kyat, according to local fuel stations.
On 1 January, domestic fuel prices stood at K695 for Octane 92, K760 for Octane 95, K870 for diesel, and K875 for premium diesel.
“Transportation costs will decline when oil prices drop. Thus, high commodity prices may see a fall. We would prefer lower fuel prices,” said a taxi driver.
In the first week of December, fuel prices stood at K840 for Octane 92, K895 for Octane 95, K995 for diesel, and Ks1,010 for premium diesel. On 14 December, the prices slipped to K795 for Octane 92, K860 for Octane 95, K955 for diesel, and K965 for premium diesel. Oil prices remained low in the last week of December, too. On 28 December, fuel prices stood at K695 for Octane 92, K760 for Octane 95, K870 for diesel, and K875 for premium diesel, according to the rates set by the Myanmar Fuel Oil Importers and Distributors Association.
In June last year, domestic fuel prices were on the rise on the back of an increase in global crude oil prices and the weakening of the Kyat against the US dollar. On 10 October, oil prices stood at K1,065 for Octane 92, K1,115 for Octane 95, K1,085 for diesel, and K1,105 for premium diesel. Fuel prices had touched a low of K520 for Octane 92, K630 for Octane 95, K470 for diesel, and K460 for premium diesel in January end, 2016.
Myanmar imports 90 per cent of its fuel oil, while 10 per cent is produced locally.
The country mainly buys fuel from Singapore, importing 200,000 tons of gasoline and 400,000 tons of diesel every month. There are 2,000 fuel stations and 50 oil importers in Myanmar.
By Nyein Nyein
(Translated by Ei Myat Mon)