Thursday, June 29, 2017

Yangon fuel prices remain stable despite import price decline

June 28, 2017
Yangon fuel prices remain steady despite lower import prices since 13 June, according to a report in Myanma Alin yesterday.

From 13 to 19 June, per liter fuel prices at international port terminals were Ks583 for octane 92, Ks608 for octane 95, Ks594 for diesel and Ks607 for premium diesel while prices at fuel stations in Yangon range from Ks660 to 690 for octane 92, Ks715 to 740 for octane 95, Ks655 to 690 for diesel and Ks675 to 715 for premium diesel.

Prices at Yangon’s fuel stations increased by Ks87 for octane 92, Ks107 for octane 95, Ks71 for diesel and Ks78 for premium diesel compared to original port prices.

Local fuel prices naturally correlate to global petroleum prices, but sharp price increases in Myanmar are buffered by government fuel subsidies which keep prices artificially stable. Dramatic price increases are generally passed on to consumers. Fuel price declines however, do not always translate to lower prices at the pump as station owners often keep prices high relative to international prices in order to take additional profits.

International investors generally frown on large energy subsidies, as they artificially insulate non-competitive economic actors against market dynamics, while many governments support subsidies as a protectionist measure and an instrument to ensure political stability.
Khin Saing
Ref; The Global New Light of Myanmar

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