Fuel oil prices set to dip

The fuel oil prices decreased by K50-85 per litre on 1 March after a hike in late February.
The prices stood at K2,770 per litre of Octane 92, K2,885 for Octane 95, K2,565 for diesel and K2,610 for premium diesel on 29 February.
The prices sank to K2,715 for Octane 92, K2,835 for Octane 95, K2,485 for diesel and K2,525 for premium diesel on 1 March.
The fluctuation of fuel oil prices in the domestic market is closely tied to the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia. The decline in MOPS price weighed on the prevailing fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
With the MOPS’s high price index climbing, the oil prices peaked at K3,245 per litre for diesel and K3,330 for premium diesel in August 2023.
The committee is, therefore, steering the market to ensure price stability and fuel oil security.
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 legal 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.
Due to proper supply of fuel oils to filling stations, no queue of vehicles to buy fuels is not seen in downtown Yangon and suburban areas in February 2024.
However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent cheaper than those of Myanmar. 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 the energy consumers to buy the oil at a cheaper rate, the committee affirmingly stated. — NN/EM