Fuel oil prices increase as dollar climbs higher

Writer: 
Sithu Aung
A fuel-oil vendor in Yangon (Photo-Kyaw Zin Phyo)
As the global oil prices increased to 4 dollars per barrel from August 21 to 28, fuel oil prices has increased 95 to 105 Kyats locally during the 100 days period and compared with prices on May 18, it has increased to 10 to 13 percent according to fuel-oil vendors.
 
The fuel-oil prices set by the Myanmar Fuel Oil Importers and Distributors Association on August 28 are; one liter of Diesel is Ks 980 (one Gallon=Ks 4449), 1 liter of Premium Diesel is Ks 990 (one Gallon=Ks 4494), 1 liter of Octane 92 Ron is Ks 950 (one Gallon= Ks 4313), 1 liter of Octane 95 Ron is Ks 1000 (one gallon =Ks 4540) respectively.
 
Beginning from the second week of October 2017, world oil prices have remarkably increased. In August, 2017, oil prices ranged around US$ 49 but in early October, it reached to US$ 51. In November it reached US$ 55, in December it reached US $ 58, in January 2018, it reached US $ 61, in February it reached to US $ 64 and by the end of April it reached US $ 68. The pace of increase in prices seen quickening as on May 21 it reached US$ 72, July 10  it reached to US$ 74, in August 7 it declined  to US$ 69 but increased again in august 28 with US$ 69.
 
The currency exchange rate has remarkably higher since June. On June 11, the price was Ks 1346 for a single US dollar. On August 16, it shot up to Ks.1570 per dollar. On the afternoon of August 28, it peaked at Ks 1560 per USD.
 
The fuel oil prices selling in the local market depend on the world oil prices, currency exchange rate and transportation charges according to Myanmar Fuel oil Importers and Distributors Association. In comparison with prices on July 10, world oil prices has declined to more than 6 percent while dollar prices higher 16 percent during 2 months period.
 
According to the data made by Myanmar Fuel oil Importers and Distributors Association, a barrel of fuel-oil are now priced at US$ 83.68 for 92 Ron, US $ 86.16 for 95 Ron while Diesel costs US$ 90.03 and Premium Diesel cost US$ 90.63.
 
Until June 15, this year, Myanmar’s fuel oil imports amounted US$ 885.310 million. Last year, Myanmar imported 708,680 ton worth US$ 629,530 million, according to the figures from the Commerce Ministry.
 
Until June 15 this year, the country imported 420798.608 ton of gasoline worth US$ 294.307 million. In the same period last year, gasoline imports reached 396062 ton worth US$ 218.689 million, according to the Commerce Ministry.
 
The country’s diesel imports hit US$ 490.920 million. Last year, diesel imports amounted to US$ 335.963 million, according to the Commerce Ministry.
 
If compare with prices on April 1, 2016 to August 28, 2018, within 29 months period, diesel has increased 96 percent, premium diesel has increased 83 percent, 92 Ron has increased 73 percent, and 95 Ron has increased 54 percent.