Oil price decrease benefits consumers

December 08


The price declines in fuel oil and edible oil passed on the benefits to the consumers, helping them to reduce the cost of living.


On 7 December, fuel price dropped to K,910 per litre of Octane 92, K2,005 for Octane 95 and K2,270 for diesel. On 26 August 2022, the diesel price touched a high of K3,225 per litre. The figures indicated a sharp drop of K4,333 per gallon of diesel and K216,672 per oil tank within three months.


Additionally, the market price of palm oil declined to K5,400-5,430 per viss. On 16 August, the palm oil price hit K9,500 per viss. Therefore, the price was down by K4,000 per viss and K300,000 per 110-viss (tank) in the past three months. The consumers are delighted with the price decrease.


Fuel oil prices influenced commodity prices. As the fuel oil price significantly declined, the dealers are no longer blaming freight costs to give a reason for the price hike.


Palm oil sales go up on the price decline. However, the price of food that uses palm oil is still high as the sellers earlier stated edible oil price increase affected the food prices, said a consumer.


High commodity prices were attributed to the rocketing palm oil prices and freight rates. Yet, the shoppers still face price hikes, they stressed.


The slide in the Kyat-US Dollar exchange rate in the first week of December is the main contributing factor to the price decrease in fuel oil prices and edible oil prices. Market observers keep their eyes on those prices to forecast the market prices. — TWA/EMM