Cost of petrol up on the back of rising oil prices

Local petrol prices have spiked between K35 and K40 per liter in the past two months, boosted by a rise in global crude oil prices.

On November 15, local petrol prices reached a high of K815 per liter of 95Ron and K775 per liter of 92Ron. Meanwhile, prices hit K785 per liter of 10ppm diesel and K765 for 500ppm diesel.

In comparison, the prices of 95Ron and 92Ron petrol had reached a previous high of K775 per liter and K750 per liter, respectively, while the price of 10ppm and 500ppm diesel hit K750 per liter and K730 per liter in September.

“Local petrol prices are rising because the purchasing price from abroad is rising. Import prices have been rising continuously,” said U Win Myint, general secretary of the Myanmar Fuel Oil Importers and Distributors Association.

Import prices were $76.03 per barrel of 95Ron MOGAS and $73.7 per barrel of 92Ron MOGAS on November 14. Meanwhile, the price to import 10 ppm Gasoil was $74.34 and $73.04 per barrel of 500pmm diesel. One barrel contains more than 132 liters.

On September 26, prices were $71.73 per barrel of 95Ron MOGAS, $69.28 per barrel of 92Ron MOGAS, $71.42 for 10 ppm Gasoil and $70.06 per barrel of 500pmm diesel.

Based on the current exchange rate, a barrel of 95Ron has increased by more than $5 (K6,845), more than $4 (k5,749) per barrel of 92Ron and nearly $3 (K4,000) for 10ppm Gasoil and 500ppm diesel.

Oil price rise

Petrol prices in Myanmar are directly related to global oil prices given that the country imports almost all of its petrol. Crude oil is a major component in the production of petroleum.

Oil prices rose to $61.73 per barrel of Brent crude on Thursday ahead of an upcoming meeting at the end this month by the Organisation of Petroleum Exporting Countries (OPEC). Producers from the cartel are expected to extend output cuts, offsetting the impact from rising US oil production and inventories.

For the first six months of the current fiscal year, Myanmar imported up to 1.73 million tonnes of fuel worth some $1.3 billion, according to the Myanmar Fuel Oil Importers and Distributers Association.

In comparison, the country imported almost 1 million tonnes of fuel during the same period last year.

Currently, there are no specific tariffs or quotas on fuel imports to Myanmar. This has resulted in rising imports over the years as the number of vehicles in the country also increases. Myanmar imports most of its fuel via sea. However, trade also takes place at border towns such as Muse.

Around 70 local and foreign companies are now actively participating in the fuel import business.

Source : Myanmar Times

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