Fuel oil reference prices continued to drop in the domestic market. The prices per litre declined to K4,500 for Octane 92 and K4,650 for Octane 95, K5,050 for diesel and K6,070 for premium diesel during the week ending 14 May, showing a price gap of K15 to K385 per litre compared to those of last week.
The prices were set at K4,668 for Octane 92 and K4,909 for Octane 95, K5,752 for diesel and K7,012 for premium diesel during the week ending 30 April. The prices soared at K4,735 for Octane 92 and K4,945 for Octane 95, K6,485 for diesel and K7,755 for premium diesel during the week ending 23 April.
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.
The committee is governing the market to ensure a stable price and secure supply. Under the guidance of the Supervisory Committee, 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 did. However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent lower than those of Myanmar. Every country has different policy patterns to fix oil prices, the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated.
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