“The system of price controls has been done numerous times in our country. Each time it was adopted, market disorder ensured. It is still best to allow prices to fluctuate based on the market,” Dr Win Myint said during a press conference in response to calls for a solution to rising fuel prices.

The way he tells it, when fuel prices were controlled in the past, petrol stations would refuse to sell petrol at loss-making levels. Others would buy and store petrol and resell the fuel at higher prices. As such, the market did not function optimally, he said.

“If global oil prices increase, the price of petrol domestically increases because petrol is imported into the country,” said Dr Win Myint.

The highest price for a liter of petrol in Yangon on April 2 was K825 for 500 ppm diesel, K840 for 10 ppm diesel, K795 for 92-Ron petrol and K840 for 95-Ron petrol.

On Wednesday however, the price per liter of 500 ppm diesel had jumped to K900. Meanwhile, 10 ppm diesel is now K915, 92 Ron-petrol at K865 and 95 Ron-petrol at K905.

Prices are even higher in Sagaing, Monywa, Meiktila and Mandalay, which are located inland and farther away from the ports. In these regions, a liter of 500 ppm diesel is now being sold at K950. Meanwhile, it is now K965 for 10 ppm diesel, K955 for 92-Ron petrol and K990 for 95-Ron petrol.

Some petrol stations in the rural areas are selling petrol for as high as K1,050 per liter.

Higher petrol prices could also hurt small business owners, who have been purchasing more petrol to run power generators during the summer months, when electricity cuts are more frequent, said U Htin Aung Kyaw, deputy manager of Kyaw San petrol station.

In view of the price spike, Yangon Chief Minister U Phyo Min Thein recent said at the Regional Hluttaw that plans to build a mass storage and distribution system are in process and tender rounds will be called soon.

Source: https://www.mmtimes.com/news/price-controls-not-viable-solution-rising-fuel-prices-mpta.html