The prices of fuel oil have fallen back slightly in the domestic market following the dip in global oil prices.
On 22 June, the prices stood at K2,275 for Octane 92, K2,375 for Octane 95, K2,690 for diesel and K2,720 for premium diesel, whereas the prices declined to K2,135 for Octane 92, K2,225 for Octane 95, K2,410 for diesel and K2,435 for premium diesel on 1 July. There is a gap of K140-285 per litre within ten days, according to the local fuel oil market. A supervisory committee on oil import, storage and distribution of fuel oil is governing the fuel oil storage and distribution sector effectively and ensures price stability for energy consumers.
Additionally, the department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and health profit per cent. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the reference rates daily covered 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. As per 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 compared to 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. Moreover, the government set the official exchange rate at K1,850 to stabilize the FX market, keep the balance between exports and imports and mitigate foreign currency risk.
For the oil sector, the committee is implementing to import the oil promptly depending on the actual requirement in the domestic market. The committee is also carrying out to generate revenue for the State, scrutinize import licences, submit a request to purchase foreign currency, monitor the oil storage and distribution activities, control quality and make traceability records for price manipulation, overcharging and identifying abnormal conditions in handling oil to take actions against those unscrupulous traders. People can file any complaints about services at petrol stations through contact numbers (067-409881, 067-411129, 09-699611116, 09-440433533). Upon the complaints, a surprise check, assessment, discussion and taking actions are conducted. The PPRD is also tackling the matters requested by the oil-importing companies, according to the statement.
Source: The Global New Light of Myanmar