According to the fuel market, the price of domestic fuel has fallen again and reached K1,700 per litre for Octane 92. Last 22 June, the petrol price in the Yangon market was K2,275 for Octane 92, K2,375 for Octane 95 and K2,720 for premium diesel. The price of diesel reached K2,690 per litre. On 16 July, the price of fuel oil in the Yangon market is K1,700 for Octane 92, K1745 for Octane 95, K2,190 for premium diesel, and K2,130 for one litre of diesel. Therefore, within 24 days, according to the type of fuel, per litre has decreased by from K530 to K630. The decline in fuel prices is due to the decline in Singapore-based Mean of Platts Singapore (MOPS) prices.
It is reported that the current Motor Fuel Import, Storage and Distribution Supervisory Committee is working to ensure that there is no shortage of motor fuel in the market and to stabilize prices. In addition, in order to ensure that the fuel prices in the market are balanced, the Petroleum Products Supervision and Inspection Department publishes daily fuel reference prices under the supervision of the Fuel Import, Storage and Distribution Supervision Committee. The reference prices are based on Singapore’s daily MOPS price. It is based on the reference wholesale price in Yangon, taking into account operating costs and reasonable profit percentages, premium insurance fees plus taxes.
After adding reasonable average transport costs to the reference wholesale price, officials have calculated the reference retail prices that should be according to the regional and state capitals. Reference retail prices are published via national newspapers, media and the department’s Facebook page and its website. Myanmar can meet only about 10 per cent of its domestic fuel demand, and the remaining 90 per cent has to be imported and used from abroad, so the price of fuel sold locally is changing depending on the international price.
It is reported that the price of domestic motor oil is distributed at a reasonable price compared to the regional countries, and officials are working to ensure that there is no mutual harm between the sellers and the users to have reasonable prices. In some countries, due to taxes on the import of motor fuel, the price is higher than in Myanmar. In Malaysia, the government provides additional payments as subsidies so the price is about 60 per cent cheaper than in Myanmar. Every country set fuel prices according to its own country’s policy, but Myanmar collects only a small percentage of taxes and distributes the fuel to the public at a low price, officials said.
Source: The Global New Light of Myanmar