CBM sells US$150 million to fuel oil sector

The Central Bank of Myanmar (CBM) sold US$150 million to the fuel oil sector, according to the Consumer Affairs Department. The CBM sold $140.90 million countless times to the fuel oil imported companies at the references rate of a minimum of K1,753 and a maximum of K1,820 between 15 September 2021 to 19 January 2022. Of them, more than 151 million litres of fuel oil worth $103.90 million are being distributed to the market. Of over 151 litres of fuel oil, more than 144 million litres have been distributed so far and the remaining only over 71 litres are left to sell to the market, said an official from the Consumer Affairs Department.

Besides, the CBM sold $37 million to the fuel oil imported companies at the reference rate of K1,781 from 12 January to 19 January. But all the fuel oil isn’t distributed yet. The volumes of fuel oil, equivalent to $37 million have remained for sale. If the consumers find the shops that are not being sold at the fixed price, they are urged to report to the Working Committee on Ensuring the Smooth Flow of Trade and Goods, Consumer Affair Department and Myanmar Petroleum Trade Association. At present, the domestic oil price is positively related to the global market and the dollar exchange rate. The soaring demand drives up the oil prices rally higher.

A dollar is worth around K2,000 in the domestic foreign exchange market. On 28 January, the fuel prices were K1,610 per litre of diesel, K1,620 per litre of premium diesel, K1,590 per litre of petrol (RON 92) and K1,650 per litre of petrol (RON 95), according to figures released by the Myanmar Petroleum Trade Association (MPTA). The price hike is attributed to the devaluation of Kyat in the foreign market. Currently, the US dollar exchange rate still reached a record high in Myanmar of around K2,000 per dollar. In early February 2021, the exchange rate on the US dollar hit around K1,330 per dollar. The fuel oil was pegged at around K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Myanmar imports around six million tonnes of fuel oil per year, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar