Fuel prices see K200-per-litre hike within one day

The prices of domestic fuel prices increased sharply by K200 per litre, according to the fuel oil market.
The fuel prices fluctuated starting from last July. 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 slid to K1,820 for Octane 92, K1,880 for Octane 95, K2,290 for premium diesel and K2,225 for diesel on 8 August, showing an increase of K200 per litre within one day.
The fuel price hike is tracking the Central Bank of Myanmar’s foreign exchange policy. The CBM raised the reference exchange rate for a US dollar from K1,850 to K2,100.
That recent foreign exchange policy came into effect on 8 August.
The market observation that shapes market price trends still needs to be done.
The Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil 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 Regulatory 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 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.
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 compared to that of Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than those in 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