Since December 20, local prices for fuel have been falling in line with a drop in the prices of crude oil on the international market.

“But the oil prices started rising again starting from January 3, so prices in Myanmar may rise too,” said U Sai Wun Hlaing, manager of the Yadana Kaung Kin filling station.

“Current prices reflect the international market. With global oil prices rising again last week, fuel prices in the local market have to follow, although I think the increase will not be significant,” he said.

The price of crude oil was US$49.77 a barrel on December 18, and it dropped to US$ 42.73 on December 26. The price bounced back on December 27 US$ 47.23 a barrel on January 3.

It reached a high of US$ 52.30 yesterday.

Retail prices of fuel in Yangon on December 3, stood at K855 for Ron 92 petrol, K925 for Ron 95 petrol, K1010 for diesel and K1,025 for premium diesel per litre.

Prices dropped on January 9, to K700 for Ron 92petrol, K790 for Ron95 petrol, K890 for diesel and K900 for premium diesel per litre, according to a statement from The Myanmar Petroleum Trade Association (MPTA).

“I was thinking of travelling for a holiday as fuel prices have dropped. It is not good if prices increase again. If prices increase significantly, it would cost a lot if I travel a long distance. I want prices to stabilise,” said U Zin Myo, a 30-year-old engineer.

Fuel retailers said fuel prices in Myanmar had fallen due to a strengthening of the kyat even as oil prices were low, adding that if the kyat continues strengthening it would offset the higher prices of crude.

They said if exchange rate keeps falling, fuel prices will not increase much and the situation will be fine.

Kyat-dollar exchange rate per dollar on January 9 was K1,535 in outside market and K1,534 fixed by Central Bank of Myanmar.

Source: https://www.mmtimes.com/news/local-fuel-prices-likely-rise-again.html