Fuel prices rise over 25% in just over 10 days

Photo – A scene of people lining up to refuel. In Myanmar, fuel prices have been rising continuously since late July, with diesel increasing by 810 kyats (25.5%) per liter between July 20 and 31, a period of 11 days, according to reference prices. During the same period, premium diesel increased by 935 kyats (approximately 24%), and both Octane 92 and 95 rose by over 12% each. Price changes indicate that the rate of increase for diesel oil was faster than that for gasoline. However, this increase does not represent the highest price reached this year; it is a rebound after a decline from record high prices set in April. Approximately 97% of the fuel used in Myanmar is imported from abroad, according to a release from the Ministry of Energy. Therefore, international fuel prices, the Kyat-Dollar exchange rate, foreign exchange availability, and transportation costs directly impact domestic fuel prices. According to a statement from the Committee for Supervising Fuel Import, Storage, and Distribution, domestic reference prices are calculated and set based on Singapore's MOPS prices and the Kyat-Dollar exchange rate. This year, the Central Bank has also officially announced that it has repeatedly sold tens of millions of US dollars in foreign currency for fuel imports. In March, Myanmar experienced fuel shortages, necessitating measures such as restricting purchases based on odd and even license plate numbers. Although the situation later improved, prices have now started to rise again. The World Bank's Myanmar Economic Monitor report analyzes that rising fuel prices can increase transportation, production, and distribution costs, potentially putting further pressure on basic commodity prices. Economic analysts suggest that since diesel oil is primarily used for goods transportation, agricultural machinery, factories, and generators, continued price increases could exert ongoing pressure on basic commodity prices through increased transportation and production costs. Editor: Naung Naung