Myanmar Petroleum Trade Association (MPTA) called on business persons not to sell fuel at the rate less than purchase prices

THE Myanmar Petroleum Trade Association (MPTA) has requested businesspersons not to sell fuel at the rate less than purchase prices to avoid the possible risks like financial fraud, said its secretary Dr Win Myint.
This come from the meeting of the association held on Saturday, 28 September.
Currently, some filling stations are selling fuels at prices which are lower than their purchase prices in the domestic market.
Dr Win Myint added that selling of fuels at less than purchase prices can impact the market in the long run. Financial problems may arise in the future. At present, some filling stations in the countryside discontinued their business. Internationally, this is an unfair competition arising due to the stiff competition of big companies. Therefore, the association called on entrepreneurs to sell fuel at above purchase prices.
He went on to say that sellers, who previously sold fuels at the rate equivalent to purchase prices, are able to immediately reduce fuel selling prices, when there is dollar depreciation in the market. However, those who sold fuels at lower than purchase prices are difficult to reduce their selling prices at that time. Financial fraud may occur as a consequence of stiff market competition. The MPTA’s new arrangements will control retailers not to sell fuel at the rate less than purchase prices and generate a profit of no more than 4 % while wholesalers have to make a profit of no more than 2 %.
The domestic fuel prices mainly depend on dollar values and MOPS prices. Local fuel prices will remain unchanged despite dollar depreciation when fuel prices are high in the global market. That is why domestic fuel prices are still high in the market owing to unstable world fuel prices and some entrepreneurs who sell fuel at less than purchase prices.
U Kyin Sein, a taxi driver, said that the fuel prices are still high in the local market despite dollar depreciation that forced some taxi drivers to discontinue their services.
“Some colleagues of mine stopped their taxi service business while some others are doing business with different approaches. They stopped finding passengers, waiting for them from the stopped car on roadsides in an attempt to reduce fuel costs. Currently, the expenses and profits are unbalanced. Cab drivers are trying to earn Ks40,000 a day to cover the costs.”
The MPTA’s secretary said that they the current fuel selling prices are based on dollar prices and MOPS prices, earning unhealthy profits this year.
The sale of fuel may diverse in the market as importers bought the product at a different time and different rate. For the time being, there are two retailers involved in fraud cases.
In the market, there are some consumers who criticize that the quality and measurement of fuels are unsatisfactory.
According to the market data, there are over 50 petroleum companies and over 2,000 filling stations nationwide. In the market, octane 92 petrol was sold for Ks1,035 per litre on 29 September whereas filling stations sold a litre of octane 95 petrol for Ks1,085, a litre of diesel for 1,065 and premium diesel for Ks1,075.

(Global New Light of Myanmar: http://www.globalnewlightofmyanmar.com/mpta-calls-on-business-persons-to-sell-fuel-at-above-purchase-prices/ )

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