CENTRAL Bank of Myanmar (CBM) announced on 17 March that it would sell US$33 million into fuel oil importers.
CBM announced on 10 March that it would sell $33 million and 150 million baht into the fuel oil sector. Moreover, it pumped $23 million and 150 million baht into the fuel oil sector on 4 March after announcing it on 3 March.
CBM’s currency injection slashed fuel oil prices. Consequently, the set fuel prices declined K3,080 per litre of Octane 92, K3,135 for Octane 95, K2,655 for diesel and K3,285 for premium diesel during a week from 14 to 20 March. 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.
Under the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil, 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 those 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
