Just business entities in the fuel oil sector comply with the reference price set by the institution concerned, so the fuel consumers are delighted with that.
Furthermore, those engaged in the forex market and in the gold market are found to have weak compliance at the reference prices. The consumers are bearing the burden of those extra costs.
The reference price was set for fuel oil and edible oil depending on the market price and foreign exchange rate.
“I could buy the fuel oil according to the daily wholesale and retail reference prices,” Ko Than Win, a taxi driver, told the Global New Light of Myanmar (GNLM).
The fuel oil wholesale reference prices stood at K1,867 per litre of Octane 92, K1,941 for Octane 95 and K2,291 for diesel. The retail prices were K1,965 per litre of Octane 92, K2,041 for Octane 95 and K2,410 for diesel. Those reference prices were effective on 2-4 December and the fuel buyers were able to reach them.
Next, the wholesale reference price of edible oil for the Yangon market is released on a weekly basis on Mondays depending on the foreign palm oil market conditions. However, the consumers find it hard to buy them at the reference prices, said a trader.
Every month, approximately 30,000 tonnes of edible oil are imported from the foreign markets and mobile market trucks offer them at the retail reference price. Nonetheless, the sales quota volume is extremely low. That being so, there is a gap of thousand Kyats between the reference price and the market price.
In August 2022, there was a price difference of K4,000 per viss. On 3 December, it narrowed to K1,200 per viss of palm oil, according to the Yangon edible oil market.
Likewise, the institutions concerned set the reference prices for exchange rate and daily gold price. Weak culture of compliance by traders in those industries resulted in exorbitant market prices compared to the reference prices.
Moreover, the floor price for 2022 monsoon paddy (low-grade) and 2023 summer paddy (low-grade) was set at K630,000 per 100 baskets (46 pounds per basket), according to the leading committee for the Protection and Promotion of the Rights and Interests of Farmers. Actually, the market price hit K1 million to K1.3 million per 100 baskets (50 pounds per basket), said a rice dealer from Wakema Township.
The committee set the floor price for paddy at K540,000 per 100 baskets for 2021 monsoon paddy and 2022 summer paddy. They were sold at K600,000 per 100 baskets.
Unlike reference price, the traders are notified of purchasing the paddy at floor price if the market price falls below that.
The farmers received higher prices than the floor price in the past two years.
Next, the importers and the traders who keep the stocks in hands of the certain goods earn a great profit amid the weak compliance. A buyer called for enforcement for the regulatory compliance so that they can enjoy the reference prices of those certain commodities and goods.—TWA/EMM