Drop in fuel oil price below K2,000 per litre yet to come

The price of fuel oil has not dropped below K2,000 per litre, according to the fuel oil market.
The prices of fuel oil gradually decreased in the fourth week of September. On 27 September, the prices stood at K2,070 per litre for Octane 92, K2,140 for Octane 95, K2,540 for diesel and K2,625 for premium diesel.
In late August, the prices touched a high of K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel.
The prices were therefore down by K500-700 per litre within one month.
The domestic fuel prices follow 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 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 committee draws up Standard Operating Procedures (SOPs) on fuel import, storage and distribution and sends reports of fuel import matters to the Foreign Exchange Supervisory Committee. This month, fuel importers have an import quota of 233,594.60 tonnes, with 80,499 tonnes of gasoline and 153,095.60 tonnes of diesel.
That is why fuel oil is sufficient in the domestic market. Oil tankers are unloading fuel oil at terminals of Thilawa Port.
The committee is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate is set on the MOPS’ price assessment, shipping cost, profit margin, premium insurance and other general costs.
The rates for regions and states other than Yangon are evaluated after adding the transport costs 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. —NN/GNLM