Oil prices dip on 5 January

Fuel prices declined at a slower pace in the domestic market.
Fuel prices were K2,550 per litre of Octane 92, K2,655 for Octane 95, K2,440 for diesel, and K2,480 for premium diesel on 4 January. Then, the prices decreased a bit to K2,535 per litre of Octane 92, K2,635 for Octane 95, K2,320 for diesel, and K2,405 for premium diesel on 5 January.
The price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, influences the domestic fuel prices, according to the Supervisory Committee on Oil Import, Storage, and Distribution of Fuel Oil.
Last August 2022, the oil prices hit the highest of K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel, and K3,245 for diesel.
The committee is therefore steering the fuel oil storage and distribution sector effectively to secure oil stocks in the domestic market and ensure price stability for energy consumers by issuing daily reference prices.
The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found 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. 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 those of Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than those of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also levies only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. — NN/EM