Fuel oil prices experience slight rebound

The fuel oil prices increased slightly on 16 February, indicating a slight increase of K70-85 per litre.
The prices sank to K2,685 per litre of Octane 92, K2,805 for Octane 95, K2,525 for diesel and K2,570 for premium diesel on 15 February.
The prices increased to K2,770 for Octane 92 and K2,875 for Octane 95, K2,595 for diesel and K2,640 for premium diesel on 16 February.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, influences the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
Following the MOPS’s high price index, the oil prices hit the highest of K3,245 per litre for diesel and K3,330 for premium diesel in August 2023.
The committee is steering the market for price stability and fuel oil security in the domestic market.
Under the supervision of the committee, the Petroleum Products Regulatory Department has been issuing daily reference prices to ensure price stability for energy consumers.
The committee is inspecting the fuel stations to see whether they are overcharging. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate.
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 than Myanmar’s. However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent cheaper than Myanmar’s. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. — NN/EM