Domestic oil prices down by over 50 per cent in Jan-April

DOMESTIC oil prices have registered a downward trend since January-end on the back of falling prices in the global markets, and it is expected to remain on the low side, said a market observer.


The oil and gas sector has been crashed during Covid-19 outbreak. Oil price went negative on 20 April as there is no place to store all the crude the world is producing, but not using.


The global market remains broken, leading domestic oil price plunge to more than 50 per cent in April against January’s prices.


In the global markets, oil prices dipped to US$16.8 per barrel for Brent oil and $11.24 per barrel for WTI crude oil on 22 April 2020. Domestic oil prices have been on the decline since 10 January 2020 owing to a fall in global oil prices. On 8 January 2020, oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Then, the prices in the domestic market have been extending its drop.


On 22 April 2020, the oil prices touched a low of K290-330 per litre for Octane 92, K430-455 for Octane 95, K435-465 for diesel, and K445-475 for premium diesel, according to the domestic oil market. “Sure, the drivers have been happy for months now as the price drops by half.


However, the majority of the people in the city stay at home due to Covid-19 threats. The oil demand is extremely low and the oil market has collapsed across the globe,” said a taxi driver. On 10 October 2018, due to an increase in global crude oil prices and the weakening of the Kyat against the US dollar, oil prices had touched a high of K1,065 per litre for Octane 92, K1,115 for Octane 95, K1,085 for diesel, and K1,105 for premium diesel.


Ninety per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. Myanmar has imported about one million tonnes of diesel and petrol worth nearly $600 million over the past two months of the current fiscal year, according to the Ministry of Commerce. Myanmar imports fuel oil primarily from Singapore, with monthly volumes touching 200,000 tonnes for gasoline and 400,000 tonnes for diesel. There are about 2,000 fuel stations and 50 oil importer companies in Myanmar. — Ko Htet


(Translated by Ei Myat Mon)