The prices of Octane 92 and 95 have risen in the Yangon’s market on global cues.
The fuel oil prices were K2,060 per litre of Octane 92 and K2,160 per litre of Octane 95 on 11 November. The prices jumped to K2,130 for Octane 92 and K2,250 for Octane 95 on 13 November. However, diesel prices stayed on the low side of K2,145 per litre of diesel and K2,245 for premium diesel.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, heavily influences domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
With the MOPS’s price index climbing 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 stations experienced a high demand for Octane 92 in recent days. Distribution by three terminals did not meet the demand and it was out of stock on 10 November.
However, the petrol stations were urgently filled with stocks on the night of 10 November. Oil tankers docked at port terminals on 11 and 12 November and 15 more are slated to arrive at the Port. This being so, the oil will be distributed to the filling stations in a timely manner as per the committee.
At present, there is a fuel oil security in the market, with stocks of over 13 million gallons of Octane 92, over three million gallons of Octane 95, over 29 million of diesel and over 20 million gallons of premium diesel.
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’s price assessment, shipping cost, premium insurance, tax, other general costs and health profit per cent.
The rates for regions and states other than Yangon are evaluated after adding the transportation cost. The retail reference rates daily cover 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.
The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking 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. 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
