Domestic fuel prices soar within three and a half months

Writer: 
Sithu Aung
Fuel station in Yangon (Photo-Kyaw Zin Phyo)

 

Fuel prices have soared over 13 per cent for more than three and a half months, peaking at Ks4,517 per gallon for 92 Ron, Ks4,744 per gallon for 95 Ron, Ks4,653 per gallon for diesel and Ks4,698 per gallon for premium diesel, according to live rates from fuel stations.

In the local market, fuel retail prices are fixed by Myanmar fuel oil import and distribution association are Ks1,025 per liter (Ks4,653 per gallon) for diesel, Ks1,035 per liter (K4,698 per gallon) for premium diesel, Ks995 per liter (Ks4,517 per gallon) for 92 Ron and Ks1,045 per liter (Ks4,744 per gallon) for 95 Ron on September 17. It is increased to 12.63 per cent for diesel, 12.89 per cent for premium diesel, 13.06 per cent for 92 Ron and 12.36 per cent for 95 Ron in compared with the fuel prices in June 3.

Global oil prices soared significantly in the second week of October, 2017 and reached to US$51 per barrel in early October, US$55 per barrel in early November, US$58 per barrel in early December, US$61 per barrel in early January, US$64 per barrel in early February, US$68 per barrel in late April, US$72 per barrel on May 21 and US$74 per barrel on July 10. It is declined to US$69 per barrel on August 17 and US$65 per barrel on August 20. It was increased again to over US$70 on August 30 and hovered around US$69 per barrel on September 17.

Foreign Currency Exchange rates also increased significantly starting from June. It reached to Ks1,570 per US$ on August 16 and around Ks1,567 per US$ on the afternoon of September 17. The exchange rate was only Ks1,346 per US$1on June 11.

Fuel importers said the local fuel prices are changed depending on global oil prices, exchange rate and transportation expenses. Global oil prices are decreased to over six per cent in compared with the fuel prices on July 10 and exchange rate increased to over 16 per cent within over two months.

According to Mean of Platts Singapore (MOPS) prices issued by the Myanmar fuel oil import and distribution association on September 14, fuel prices are US$87.16 per barrel for 92 Ron, US$89 per barrel for 95 Ron, US$91.41 per barrel for diesel and US$92.40 per barrel for premium diesel.