Price, quality of domestic petrol and diesel under scrutiny in Yangon

Private petrol stations in Yangon are selling around 270,000 gallons of petrol and 150,000 gallons of diesel at spot prices on a daily basis, U Han Htoon, Minister of Agriculture, Livestock, Forestry and Energy said in the Yangon Parliament this week.

Concerns over higher petrol and diesel prices are rising as global oil prices have become more volatile in recent months, said MP U Yan Shin from Mayangone Township during the Parliament session.

“Petrol and diesel are basic necessities for the people. If prices increase, transportation charges will also rise and it will have an impact on consumers. However, in Myanmar, when global oil prices decrease, domestic petrol and diesel prices do not decrease in tandem. When oil prices rise though, domestic prices in the country jump immediately,” he observed.

Meanwhile, the quality of petrol and diesel sold is also suspect, as some private distributors have been known to mix low quality substances into the original petrol . As traffic is heavy in Yangon, the government should also supervise the quality of petrol sold in the region, U Yan Shin added.

‘‘Since the government permitted private petrol stations to operate in Yangon, they have been allowed to import petrol and diesel after obtaining an import license from the Ministry of Commerce and sell the fuel based on the benchmark market price. The government does not interfere with the market price,” U Han Htoon replied.

He added that the reason for domestic prices remain high even though global oil prices have fallen, is “because prices may have shifted during transit. Sometimes, prices may have fallen while the fuel, which was purchased when prices were higher, was en route to Yangon, so the petrol stations still need to charge more to cover their costs.”

However, for domestic prices to track global prices as closely as possible, the Ministry of Electricity and Energy usually sets a local benchmark price for petrol and diesel which it deems is reasonable and announces these prices through State-owned media every Wednesday.

Currently, petrol stations in Yangon import an average of 2.2 million gallons of petrol and 1.45 million gallons of diesel every day.

Meanwhile, to ensure quality and correct measurements of fuel sold at private petrol stations, the relevant ministry will conduct spot checks on at least ten petrol stations on a monthly basis, U Han Htoon said.

Source: Myanmar Times

To see the original article click link here

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.