Octane prices moved up a bit in the domestic market, indicating a one-day increase of K105-110 per litre.
Fuel prices were K2,105 per litre of Octane 92 and K2,240 for Octane 95 on 21 November. Then, the prices increased slightly t to K2,210 per litre of Octane 92 and K2,350 of Octane 95 on 22 November.
Yet, diesel prices stayed unchanged at K2,125 for diesel and K2,215 for premium diesel on 22 November.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, is closely tied to the domestic fuel prices, according to the Supervisory Committee on Fuel Oil Import, Storage and Distribution.
In August 2022, the oil prices hit the highest of K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel and K3,245 for diesel.
The committee is therefore steering the fuel oil storage and distribution sector effectively so as not to have a shortage of oil in the domestic market and to ensure price stability for energy consumers.
Of 146 petrol stations in Yangon, some petrol stations braced for the high demand for Octane 92. Distribution by three terminals did not meet the demand, causing fuel shortages on 10 November.
However, the petrol stations were urgently filled with stocks on the night of 10 November. Four oil tankers docked at port terminals on 11 and 12 November, and 15 more are slated to arrive at the port. Therefore, oil will be distributed to the filling stations on time, as per the committee.
At present, there is a fuel oil security in the market, with stocks of over 13 million of Octane 92, over three million of Octane 95, 1.4 million of Octane 97, over 29 million of diesel and over 20 million of premium diesel.
Myanmar imports 90 per cent of fuel oil consumption, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices. The government 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 that 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 energy consumers to buy the oil at a cheaper rate. — NN/EM
