Analysts say fuel prices still high due to lack of junta’s $ 200 million subsidy

0
350

Mawlamyine, September (9)

Although the price of world crude oil keeps falling, the domestic gasoline price does not fall because the military council did not actually offer a $200 million subsidy, fuel suppliers said.

The junta-controlled central bank announced on August 31 that it would provide more than 200 million US dollars through the forex market to ease the high prices of commodities caused by high fuel prices.

However, the military council has not disclosed anything about how the 200 million dollars was provided, and the price of fuel has not decreased as much as expected, and the price is still high.

An oil supplier claimed that because the military council did not provide $200 million and oil importers ended up buying dollars on their own, the price of crude oil did not go down.

Currently, diesel is priced at 3100 kyats per liter and gasoline at 2500 kyats. However, the price of crude is decreasing on the international market, going from $120 to $80 per barrel.

“The price of oil must fall if the authorities effectively support those who import oil. Global crude oil prices are also falling now. The oil supply in Thilawa is controlled by the government and we get a small quota of oil,” one supplier said.

Therefore, according to fuel importers and suppliers, the military council must publicize its support of a $ 200 million subsidy and also sell the dollars at a fixed rate in order to lower the price of fuel oil.

At present, the military regime controls the fuel market and distributes the fuel on a limited basis, so the fuel manufacturers are buying on a quota system.

Before the military coup, the fuel price was just about 600 kyats per liter; however, the price has since soared by more than four times, and there are frequently fuel shortages.

News – Than Lwin Times

LEAVE A REPLY

Please enter your comment!
Please enter your name here