Fuel oil imported with CBM exchange rate to distribute at reasonable price

US$53.4 million worth of fuel oil has been imported with the Central Bank of Myanmar (CBM) exchange rate to distribute at a reasonable price, according to the Consumer Affairs Department. The CBM has already sold $53.4 million to our Myanmar Petroleum Trade Association (MPTA). But, they still have some dollars to withdraw from the bank. Currently, the retail stations are still selling the $20 million worth of fuel oil. They are also making effort to sell the remaining over $33 million worth of fuel oil through the retail stations. They are also carrying out the distribution plan, said an official from the Consumer Affairs Department.

MPTA, in cooperating with the Ministry of Commerce has sold fuel at a fair price since 22 September, which is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar. The Consumer Affairs Department stated that more than 51 million litres of fuel oil were sold at a reasonable rate between 22 September and 2 November 2021. Out of them, the association ended over 19 million litres of 92 Ron, over 12 million litres of diesel and over 18 million litres of premium diesel. The fuel oil at the fairer price is available at 229 petrol-filling stations in Yangon, Mandalay, and Nay Pyi Taw cities and Mon, Shan, Kachin, Kayin and Rakhine states and Sagaing, Bago, Magway and Ayeyawady and Taninthayi regions.

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, calling 09-664075683, 09-664596327 and 09-676320816, to Yangon consumer affair department 01- 250270 and Myanmar Petroleum Trade Association 09-421006794. The fuel oil was pegged at around at K590 per litre for diesel, K605 for premium diesel, K590 for Octane 92 and K610 for Octane 95 in early February 2021 in the domestic retail market. Then, it strangely climbs up to K1,340 for diesel, K1,355 for premium diesel, K1,420 for Octane 92 and K1,4850 for Octane 95 at present. There is a significant price gap of K700-800 per litre, according to the local fuel oil market. The devaluation of the local currency is the main reason for the oil price hike in the domestic market. At present, a dollar is worth around K1,900 in the domestic foreign exchange market. Normally, Myanmar yearly imports around 600,000 tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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