Truck owner profits and diesel prices display an inverse relationship.
On 4 May, a litre of octane 92 and regular diesel were priced at K1,915 and K1,795 respectively, but on 18 September, the prices rose to K2,440 and K2,650.
Between 16 and 18 September 2023, approximately five months after 4 May 2023, regular diesel and octane 92 prices increased by 47 per cent and 27 per cent respectively, U Thaung Shwe, a truck owner, told the Global New Light of Myanmar (GNLM).
Although prices have risen, the fuel price has not yet reached its record price of K3,245 for a litre of regular diesel and K2,605 for a litre of octane 92 on 31 August 2022.
There is still significant use of diesel in the transportation and electricity generation sectors. When comparing fuel consumption and cargo tonnage in the transportation sector, the fuel cost of trailers that can carry approximately 20,000 tonnes of cargo is lower than that of 12-wheeler trucks that can only carry around 10,000 tonnes of cargo.
The prices of manufactured products have increased in most manufacturing industries that use electricity, justifying the availability of electricity and the rise in fuel prices. However, when the price of fuel falls, the prices of these goods do not decrease, as reported by a shop owner.
In the transport sector, the freight rate is not directly related to the fuel price, but it is often used as an excuse. When there is a shortage of trucks to transport cargo, freight charges tend to rise regardless of fuel price fluctuations. — TWA/CT
