The Fuel Oil Importers and Exporters Association yesterday denied they are monopolising the fuel market and said they are even working to cut local gasoline and diesel price while the global oil price is falling.
“Price depends on supply and demand plus it also depends on condition of the goods flow. At the moment, our association is trying to cut the fuel price. There is no monopolization on the market. It has not come down suddenly because of shipping programmes. US dollar exchange rate went up while importing. The global oil price went down this month and it seems merchants are trying to sell it with a control price,” Win Myint, secretary for the association explained at the press conference held at Union of Myanmar Federation of Chambers of Commerce and Industry yesterday.
Meanwhile, the fuel retail price seems not to be falling but the wholesale price is declining and the association is working on that, he added.
Last January, the global oil price was US$ 94 per barrel. But starting in June, the price started falling and it reached below US$ 50 per barrel this month.
This is the first time oil price has fallen under US$ 50 per barrel while dollar seems strong; stock market is falling; less demand and more supply of oil.
Critics say that local fuel distributors have failed to maintain the market price while the oil price in the whole world is going down.
“A month ago, a litre for diesel was sold at Ks 890. Now it is sold at Ks 719 per litre. At least Ks 1,000 was cut per gallon. Some distributors are even planning to reduce the price. At the wholesale market, it is Ks 550 per liter. Wholesale price seems easy to change but for the retail price to fall down it would take some time.
However, we are working straight forward to cut down the retail price. As we are not governmental organisation, we need to negotiatiate,” Win Myint said.
According to Win Myint, there is no limitation over how many gas stations can be opened or how much fuel can be imported. About 2,000 gas stations are selling fuel and the differential price between retail and wholesale is Ks 70 per litre.