Rising local fuel price is mainly due to high fuel price at the international level and high exchange rates for exports

THE major reasons that the local fuel price is rising are the high fuel price internationally and high exchange rates for exports earning dollars, officials from Myanmar Petroleum Trade Association (MPTA) and gas filling stations told The Myanmar Times on September 20.

Daily records of the MPTA suggest that, when compared the fuel prices on September 19 to August 18, one litre of diesel has increased considerably, between K65 and K50.

The main reason is that international fuel prices have increased a lot and are much higher now.

- Dr Win Myint, MPTA

“Our remaining stocks have diminished and new import prices have risen. Hence, fuel prices become a little higher,” said Dr Win Myint, MPTA secretary.

The highest average fuel prices on August 18 were gasoline (92 Ron) K680, gasoline (95 Ron) K715, diesel (10 ppm) K690 and diesel (500 ppm) K670.

Fuel prices per litre on September 19 were gasoline (92 Ron) K730, gasoline (95 Ron) K770, diesel (10 ppm) K740 and diesel (500 ppm) K720.

One 92 Ron consumer told The Myanmar Times: that there is a considerable difference in price since last month.

“The quantities we received for K10,000 last month and in this month [prices] differed a lot,” the consumer remarked.

Imported MOGAS prices per barrel (over 132 litres)  on August 18 were US$64.74 for 92 Ron, $ 67.27 for 95 Ron, $ 62.70 for diesel (10 ppm) and $61.85 for diesel (500 ppm).

But those on September 19 were $67.47 for 92 Ron, $70.55 for 95 Ron, $68.91 for diesel (10 ppm) and $68.25 for diesel (500 ppm).

Denko station managing director U Thaung Shwe said that the fuel prices have increased internationally. And this has pushed up the local price as a result.

“As fuels for motors have risen internationally, the price of export earning dollar has also increased. As it was no more profitable, some of us had to increase the fuel prices,” he explained.,

But the exchange rate of export earning dollar on August 18 was K1,364; that on September 19 was merely K1,360.

Myanmar importers have to buy back export earning dollars for importation and thus exchange rates of export earning dollars are used for calculating import value.

Exchange rates set by Central Bank of Myanmar on August 18 were K1,361 versus one US dollar. But the rate was changed to K1,355 on September 19.

(The Myanmar Times: https://www.mmtimes.com/news/fuel-prices-rise.html )

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