The price of Octane 92 has been stable at below K2,000 per litre for two weeks, according to the fuel oil market.
The prices of fuel oil have gradually decreased since the fourth week of September. On 26 October, the prices stood at K1,965 per litre for Octane 92, K2,055 for Octane 95, K2,600 for diesel and K2,680 for premium diesel.
In late August, the prices touched a high of K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel.
The domestic fuel prices are following the decline in the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
The committee is steering the oil sector effectively not to have a shortage of oil in the domestic market and ensure price stability for energy consumers.
The committee is scrutinizing and importing fuel oil to have an adequate supply in the domestic markets. From 12 October, 2.88 million gallons of premium diesel by MT Aulac Vision ship and 2.18 million gallons of diesel and 1.86 million gallons of premium diesel by MT Yu Yi ship were unloaded at the terminals of Thilawa Port. Furthermore, the MT Harmony One ship carrying 1.6 million gallons of diesel and 4.53 million gallons of premium diesel docked again and the unloading of fuel oil is being undertaken. That being so, there is an adequate stock of fuel oil in the market.
Last month, fuel importers were allowed to import 233,594.60 tonnes of fuel oil (80,499 tonnes of gasoline and 153,095.60 tonnes of diesel).
The committee is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate is set on the MOPS’ price assessment, shipping cost, profit margin, premium insurance and other general costs.
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.
According to 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