Domestic fuel oil price rises to nine-month high on vaccine optimism

The domestic fuel oil price has now risen to 30-50 percent per litre compared to April 2019, as the vaccine optimism grew, and some businesses resume their operations, the market data indicated. At present, the domestic oil market has recovered a bit as the COVID-19 heightened measures have eased a bit. The fuel oil was pegged at around K655 per litre for Octane 92, K765 for Octane 95, K695 for diesel and K705 for premium diesel on 24 January 2021 in the domestic retail market, according to the local fuel oil market.

Domestic oil price is positively related to the global market. Oil price inched higher in the worldwide market in August. In the global markets, oil prices stood at around $39.9 per barrel for WTI crude oil on 3 August 2020. In late January 2021, the price slightly gained to $52.27 per barrel. The domestic oil prices have declined from 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. Following the global market crashing, the domestic oil price plunged to more than 50 percent in April against January’s prices.

In late 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. Ninety per cent of fuel oil in Myanmar is imported while the remaining 10 per cent is produced locally. In the Q1 of the current financial year 2020-2021, about $600 million worth of petroleum products were imported. The figure plunged by half compared to a year-ago period, the Ministry of Commerce stated.

Usually, 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)

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Source: The Global New Light of Myanmar

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