Domestic oil prices see steady rise in August

A man refilling the vehicle with fuel at a filling station in Yangon. Photo: Phoe Khwar
A man refilling the vehicle with fuel at a filling station in Yangon. Photo: Phoe Khwar

The domestic fuel oil market shows a slight increase in oil prices in early August.
“Domestic oil price is positively related to global market”, said a fuel trader.
The fuel oil was pegged at around at K480-520 for Octane 92, K610-630 for Octane 95, K530-570 for diesel and K540-580 for premium diesel on 3 August in the domestic retail market.
In the global markets, oil prices stood at around US$43.28 per barrel for Brent oil and $39.9 per barrel for WTI crude oil on 3 August 2020.
The oil and gas sector has been crashed during the coronavirus outbreak. Oil price went negative on 20 April as there is no place to store all the crude the world is producing, but not using. The global market was broken, leading domestic oil price plunge to more than 50 per cent in April against January’s prices.
On 8 January 2020, domestic oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Then, the prices in the domestic market have been extending its drop.
On 22 April 2020, the oil prices touched a low of K310-330 per litre for Octane 92, K440-455 for Octane 95, K445-465 for diesel, and K455-475 for premium diesel, according to the domestic oil market.
When transportation businesses have started in mid-May, oil markets are recovering from the collapse in demand caused by the pandemic.
On 10 October 2018, due to an increase in global crude oil prices and the weakening of the Kyat against the US dollar, oil prices had touched a high of K1,065 per litre for Octane 92, K1,115 for Octane 95, K1,085 for diesel, and K1,105 for premium diesel. Myanmar imported nearly US$2.38 billion worth petroleum products over the past eight months (Oct-May) of the current fiscal year, as per the statistics of the Ministry of Commerce. Ninety per cent of fuel oil in Myanmar is imported while the remaining 10 per cent is produced locally.
Normally, Myanmar imports fuel oil primarily from Singapore, with monthly volumes touching 200,000 tonnes for gasoline and 400,000 tonnes for diesel. There are about 2,000 fuel stations and over 50 oil importer companies in Myanmar. —Ko Htet  (Translated by Ei Myat Mon)

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