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Fuel oil prices dip by K95-K120 per litre within one day

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On 20 May, the prices declined to K2,115 for Octane 92, K2,185 for Octane 95, K2,080 for diesel and K2,105 for premium diesel There is a gap of K95-120 per litre within one day.

The prices of fuel oil were reportedly down by K95-120 per litre in the domestic market.
The prices soared to over K2,210 for Octane 92, K2,280 for Octane 95, K2,200 for diesel and K2,225 for premium diesel on 19 May 2022.  On 20 May, the prices declined to K2,115 for Octane 92, K2,185 for Octane 95, K2,080 for diesel and K2,105 for premium diesel. There is a gap of K95-120 per litre within one day, according to the local fuel oil market.
The oil price was on the uptick in the previous days owing to the rumour of the shortage of oil supply at oil stations.
The news of DENKO company’s request submitted to the Department of Petroleum Products Supervision and Inspection on 17 May was spreading on social media, stating that DENKO Company was facing low inventory of RON 92 and RON 95. They distributed the oil by purchasing or filling it with the partner companies. They prioritized the petrol stations in Yangon, Mandalay and Nay Pyi Taw cities. The report included that they are to temporarily suspend sales for RON 95 at 38 petrol stations when it is out of shortage.
On 19 May, Myanmar Petroleum Trade Association responded to a piece of false news spreading in the public saying that the fuel oil is going to fall short of supply soon. Actually, the cargo ships are entering the port terminals continuously. On 19 May, MT Beluga Pacific ship carried 16,400 tonnes of fuel oil, MT Yu Hai ship loaded 17,200 tonnes, MT Yu Dong ship carried 18,200 tonnes and Aberlour ship loaded 20,000 tonnes arrived at the terminals and the fuel oil is unloading. Four more cargo ships are arriving at the mouth of the sea. The people are notified of that news.
At present, the department is issuing the daily reference rate depending on the MOPS’ price assessment.
The oil price is highly correlated with the global fuel oil price. The domestic oil price will fall tracking the global prices.
Similarly, the oil price is positively related to Myanmar’s current value against the US dollar. If Kyat appreciates against the US dollar, the price of oil will also fall.
At present, the exchange rate is pegged at around K2,000 at the unofficial exchanges.
When a dollar was valued at only K1,330 in early February 2021, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel at that time in the domestic retail market.
Normally, Myanmar yearly imports 6 million tonnes of fuel oil from external markets, the Ministry of Commerce stated. —NN/GNLM

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