FUEL oil reference prices slid to K2,670 for Octane 92 and K2,760 for Octane 95, K2,380 for diesel and K2,900 for premium diesel this week ending 30 October.

The prices were K2,705 for Octane 92 and K2,790 for Octane 95, K2,465 for diesel and K3,000 for premium diesel last week ending 23 October.

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.

The committee is governing the market to ensure a stable price and secure supply. Furthermore, the Central Bank of Myanmar has been injecting foreign currencies into the fuel oil sector to help cut the price. 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 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. Domestic fuel prices are highly correlated with international prices. The State is steering the market to mitigate the loss experienced by the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to that of regional countries.

Some countries levied higher tax rates and hiked oil prices than Myanmar’s. However, Malaysia’s oil sector receives government subsidies, and the prices are about 60 per cent lower than those of Myanmar. Every country lays down different policy patterns to fix oil prices, the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated. — NN/KK