High crude oil price drives up domestic fuel prices

THE spike in crude oil price in the global market has pushed up domestic fuel prices in the post-Thingyan period, according to oil dealers.

Oil prices have reached their highest level in four months tracking global cues, in spite of the Kyat gaining against the US dollar in the currency market. On 22 April, Octane 92 was priced at K860 per litre, Octane 95 at K935, diesel at K995, and premium diesel at K1,005 in the domestic market. On 1 January, the prices stood at K695 for Octane 92, K760 for Octane 95, K870 for diesel, and K875 for premium diesel, according to local dealers.

Oil prices surged last Monday after the US announced the termination of sanctions waivers for Iranian oil imports. Yesterday, the price of brent crude oil increased to $74.67 per barrel in the global market.

In June last year, domestic oil prices rose on account of an increase in global crude oil price coupled with the weakening of the Kyat against the dollar. On 10 October, 2018, oil prices stood at K1,065 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 10 per cent is locally produced.

Myanmar imports 200,000 tons of gasoline and 400,000 tons of diesel every month, primarily through Singapore. There are 2,000 fuel stations and 50 oil importer companies in Myanmar. — GNLM (Translated by Ei Myat Mon)