Diesel prices have risen in the domestic energy market, despite a downtick in petrol prices.
Fuel oil reference prices this week ending 23 July were set at K3,210 for Octane 92, K3,285 for Octane 95, K3,175 for diesel and K3,895 for premium diesel.
The diesel prices indicated a slight increase of K80-105 per litre compared to last week’s price. Meanwhile, petrol prices (Octane 92 and Octane 95) showed a small decrease to K40 per litre this week.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in South-East Asia, influences the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.
The committee is governing the market to ensure a stable price and secure supply. Under the guidance of the Supervisory Committee, the Petroleum Products Regulatory Department has been issuing daily reference wholesale prices to ensure price stability for energy consumers.
The committee is inspecting the fuel stations to see whether they are overcharging. Authorities are taking action against fuel station retailers under the Petroleum and Petroleum Products Law 2017 if they are found to be overcharging rather than the set reference rate.
As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. Domestic fuel prices are highly correlated with international prices. The State is steering the market to mitigate losses faced by the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to the price in regional countries.
Some countries levied higher tax rates and raised oil prices than Myanmar’s. However, Malaysia’s oil sector receives government subsidies, and prices are about 60 per cent lower than those in Myanmar. Every country adopts different policies to fix oil prices, the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated. — NN/KK
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