Dioxygenase that catalyzes the alpha-oxidation of 2-hydroxy fatty acids in an iron-dependent manner (PubMed:30530523). Involved in metabolism of phytosphingosine and is required for proper endoplasmic reticulum stress response (PubMed:25345524, PubMed:30530523). (R)-2-hydroxyhexadecanoate + O2 = CO2 + H2O + pentadecanoate Exhibits a defect in the metabolism that converts phytosphingosine to glycerophospholipids (PubMed:25345524). Leads to sensitivity to tunicamycin (PubMed:30530523). Present with 486 molecules/cell in log phase SD medium. Belongs to the MPO1 family.