FUEL oil prices declined below K3,000 per litre in the domestic market.
The set fuel prices were K3,050 per litre of Octane 92, K3,110 for Octane 95, K2,590 for diesel and K3,200 for premium diesel during the week from 11 to 17 April. Then, the prices dipped to K2,740 per litre of Octane 92, K2,800 for Octane 95, K2,390 for diesel and K2,960 for premium diesel this week ending 24 April, showing a decrease of K200-K310 per litre compared to those of the previous week.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in Southeast Asia, influences the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. Under the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil, the Petroleum Products Regulatory Department has been issuing daily reference wholesale prices to ensure price stability for energy consumers.
The committee is inspecting the fuel stations to see whether they are overcharging. 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. Domestic fuel prices are highly correlated with international prices. The State is steering the market to mitigate the loss experienced by the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to that of regional countries.
Some countries levied higher tax rates and hiked oil prices than Myanmar’s. However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent lower than those of Myanmar. Every country lays down different policy patterns to fix oil prices, the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated. — NN/KK
