The price of fuel oil surged up to over K1,900 per litre in the Yangon domestic market, according to the fuel oil filling stations. The fuel oil price in other states and regions are ranging between over K2,000 per litre depending on the transport charges. The retail prices of fuel in the Yangon market on 1 January stood at K1,375 per litre for diesel, K1,385 for premium diesel, K1,390 for Ron 92 petrol and K1,440 for Ron 95 petrol.
On 1 March, the fuel oil prices in the Yangon market hit K1,925 per litre for diesel, K1,935 for premium diesel, K1,910 for Ron 92 petrol and K1,965 for Ron 95 petrol. Consequently, the cost per litre of fuel oil rose from over K520 to K550 per litre in over two months. The weakening kyat and rising international crude oil prices have combined to push the cost of fuel oil, it is learnt. Currently, the exchange rate for the US currency has reached around K2,000. The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar in early February 2021.
At that time, the price of fuel in the Yangon market fetched K590 per litre for diesel, K605 for premium diesel, K590 for Ron 92 petrol and K610 for Ron 95 petrol. The Central Bank of Myanmar (CBM) is conducting an auction for foreign exchange to reduce the sudden fluctuation of foreign exchange rates. This year, the bank has already sold K65 million in January and K15 million in February. 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. From 15 September to 19 January, about $140.90 million were sold to the fuel oil sector at the reference rate of the CBM. Myanmar imports around six million tonnes of fuel oil per year, according to the Ministry of Commerce.
Source: The Global New Light of Myanmar