Fuel price remains upward trend, soaring to over K2,200 per litre of Octane 92

The fuel prices are moving onwards in the domestic markets and touching a high of over K2,200 per litre of Octane 92.
At present, fuel stations in some regions and states are short of supply. The market sees price spikes every day.
On 7 August, oil prices stood at K1,615 per litre for Octane 92, K1,665 for Octane 95, K2,025 for premium diesel and K1,970 for diesel. The prices inflated to K2,245 for Octane 92, K2,310 for Octane 95, K2,625 for premium diesel and K2,550 for diesel on 12 August, showing an increase of K580-K645 per litre within five days. The fuel price hike is tracking the price set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia. Singapore MOPS price surged, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
Furthermore, the Central Bank of Myanmar’s recent foreign exchange policy is a contributing factor to the price rise. The CBM raised the reference exchange rate for a US dollar from K1,850 to K2,100 on 5 August, traders guessed.
The committee is governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers.
The Petroleum Products Supervision and Inspection Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and health profit per cent.
The rates for regions and states other than Yangon are evaluated after adding the transportation cost 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.
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. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also poses only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. — NN/GNLM