Prices in Asia climbed to almost US$65 a barrel for the first time in four months on Monday amid fears that the US airstrike could trigger retaliation from the Iranians and disrupt global energy supplies. Iran is one of the largest oil producers in the world.

While higher prices have not yet materialised in Myanmar, the mounting tension between the US and Iran is a cause for concern for local fuel importers and distributors. Myanmar imports most of its fuel and petrol from Singapore.

Since Monday, the price Ron 95 petrol in Singapore rose to $76.14 per barrel, up 3.3pc from the day before. In Myanmar, the local retail price of per litre for Ron 95 petrol was K1000 on Tuesday, up from K990 on January 2.

“But Asian oil prices have since dropped so the local wholesale price of fuel is likely to fall back. In a short period, local fuel price seems to remain at current prices,” U Sai Won Hlaing, a member of Myanmar Petroleum Trade

Association, told Myanmar Times.

“All of us in oil business are interested in the changes of global politics. Although the local fuel price is a bit high, it should stay in this range over the short term,” said U Tin Aung Kyaw, a manager from the fuel import and distribution business.

So far this year, fuel prices in Yangon were their highest on January 7 at K905 per litre for 92 Ron, K1,000 for 95 Ron, K985 for 500ppm diesel and K1,000 for 50ppm diesel.

On January 2, prices stood at K 895 per liter for 92 Ron, K990 for 95 Ron, K975 for 500ppm diesel and K 990 for 50ppm diesel.

With prices beginning to taper for now, local wholesale prices are also expected to soften in the coming week, barring retaliation from Iran, traders and distributors said. – Translated

Source: https://www.mmtimes.com/news/traders-see-little-change-fuel-prices-short-term.html