CNI News

14 September 2024

Although the prices of foreign currencies including US dollar have been falling since the past week, the prices of fuel oil have not fallen, which is being reviewed and discussed by businessmen and banking experts.

The prices of fuel oil have not fallen possibly because the current price of global petroleum is on the rise; when fuel oil is bought on contract, because oil tankers take about 30 days to arrive in Myanmar, fuel oil that are being currently sold might have been bought while the price of dollar was going up.

However, the price of dollar has declined to an extent now, fuel oil supervisory committee should exercise close supervision on fuel oil entrepreneurs, U Aung Pyit Sone, a businessman, told CNI News.

" The price of dollar has fallen today. One dollar is 5,200 kyats. But an oil tanker that will sell fuel oil at 5.200 kyats per dollar doesn't arrive in Thilwa Port at once. We have to wait for about one month. Oil tankers that have arrived already have been ordered at previous price. The fuel oil supervisory committee has known that already. But when the price of dollar was high, fuel oil was sold at high price. It's necessary to sell fuel oil at a lower price when the price of dollar falls for the sake of people. The supervisory committee needs to exercise close supervision on the entrepreneurs." he said.

While seeing an oil tanker

Because it was hard to estimate how the trade was going, although the price of dollar falls, the prices of products related to dollar have not fallen; it was likely because the products were bought at a higher price, pointed out businessmen and banking experts. However, the root cause why the prices have not fallen might be due to other causes rather than having bought at high prices, U Htay Aung Kyi, a banking expert, told CNI News.

" The price of dollar falls, but the price of fuel oil hasn't fallen yet. We are buying fuel oil at 3,200 kyats per litter. People generally think the price will fall if there are a lot of supply. Is it because the products were bought at a higher price? Reasons are related to one another in detail. It will be convenient to tackle only if this ideology is seen." he said.

The prices of foreign currencies including dollar are stable at present to an extent not because Myanmar kyat becomes strong again, but because the Central Bank of Myanmar is selling out dollars at a large scale, reviewed some people.