92 Octane price jumps by over K100 per litre within 2 days

by ENERGY

The 92 Octane price jumped over K100 per litre within two days, according to the fuel market. On 3 November, the prices stood at K2,005 per litre for 92 Octane, K2,095 for 95 Octane, K2,560 for diesel and K2,635 for premium diesel in the Yangon market. On 5 November, it was K2,115 per litre of 92 Octane, K2,230 per litre of 95 Octane, K2,650 per litre of diesel and K2,720 per litre of premium diesel. Therefore, the increasing prices of fuels ranged from K85 to K135 within two days. By the end of August, the fuel prices reached their highest at K2,605 per litre for 92 Octane, K2,670 for 95 Octane, K3,245 for diesel and K3,330 for premium diesel.

The prices are on the rise again as the prices of Singapore-based Mean of Platts Singapore (MOPS) become higher, according to the Supervisory Committee on Import, Storage and Distribution of Fuel Oil. The committee takes measures to ensure avoiding fuel shortages and maintaining price stability. Moreover, the Petroleum Products Regulatory Department released the daily fuel reference prices under the guidance of the Supervisory Committee on Import, Storage and Distribution of Fuel Oil. The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and reasonable profit rate.

The rates for regions and states are evaluated after adding the transport costs and the retail reference rates daily cover on the state-run newspapers and are posted on the media and official website and Facebook page of the department daily starting from 4 May. Therefore, the fuel oil stations that sell oil at higher prices than the reference prices are scrutinized and taken action under Petroleum and Petroleum Products Law 2017. As 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally, the oil prices in the market are changing depending on the international market prices.

The government maintains the situation to be stable prices that benefit the oil importers, sellers and consumers and distributes at the firer prices compared to the prices of regional countries. Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also poses only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. 

Source: The Global New Light of Myanmar

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MOC commences new import system on Myanmar-Thailand border

by TRADING

Starting from 1 November, imports are to be allowed based on the export earnings or flows of funds and the initial stage of this move will commence in Myanmar-Thailand border areas, according to 31 October 2022 of the Trade Department under the Ministry of Commerce. To improve Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures and follow the Action Plan of the Financial Action Task Force (FATF), banking will be utilized in settling border transactions.

Imports will be allowed only with the banking system. The importers are permitted to use export earnings and foreign salary remittances of Myanmar citizens and can make transactions at the relevant banks with those earnings and flows of funds. The initial stage of this move will commence in the Myanmar-Thailand border areas, as per the statement. The Trade Department will grant an import licence after screening export earnings and flows of funds and making sure the import value does not exceed the bank account balance.

The export earnings and the flows of funds deposited after 1 April 2022 will be accepted. Those importers who seek the permit as of 31 October 2022 are not entitled to this. Those importers who were granted import licences before 31 October 2022 must bring in the goods by 30 November 2022. If they fail to do so, they will get their licences revoked. In the cross-border trade between Myanmar and Thailand, the exporting companies can import with their export earnings or transfer the earnings to other companies for imports. Moreover, they can import with their export earnings at the other border posts as well. 

Source: The Global New Light of Myanmar

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Over 20,000 tonnes of rice shipped to Bangladesh until October

by TRADING

More than 20,000 tonnes of rice have been sent to Bangladesh by up to October 2022, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027.

Following the MoU, Bangladesh’s Directorate-General of Food and MRF signed a sales contract for 200,000 tonnes of Myanmar’s rice to be exported to Bangladesh. As per the sales contract, Myanmar has shipped over 20,000 tonnes of rice to Bangladesh up to 31 October 2022. Furthermore, over 15,000 tonnes of rice are being loaded onto the vessel for now. The remaining over 150,000 tonnes of rice will be exported during the set period.

Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

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Myanmar imports pharmaceuticals worth over US$13 million in Oct 2nd week

by TRADING

A total of 1,480 tonnes of pharmaceuticals, with an estimated value of over US$13 million, were imported from foreign countries in the second week of October, according to the trad data released by the Ministry of Commerce. Myanmar brought in 980 tonnes of medicines worth $12.706 million by sea and 500 tonnes of medicine worth $1.003 via the border posts between 8 and 14 October. They are primarily imported from China and Thailand.

Myanmar imported medicines from China, India, Pakistan, Indonesia, the Republic of Korea, Bangladesh, Germany, Singapore, Slovakia and Spain through maritime trade. China is the main exporter of pharmaceuticals to myanmar with 900 tonnes, followed by India (250), Thailand (100), Pakistan and Indonesia (50 each), the ROK (30), Bangladesh (20), Germany (20), Singapore (20), Slovakia (20) and Spain (20).

Eighteen types of imported pharmaceuticals are granted for Customs tariff exemption, according to the notification (19/2022) of the Myanmar Automated Cargo Clearance System (MACCS) division under the Myanmar Customs Department, dated 19 October. They are Aspirin, Paracetamol, Chlorpheniramine maleate, Diazepam, Mebendazole, Gentamicin, Metronidazole, Propranolol, Oral Rehydration Salt, Chlorpromazine, Salbutamol, Intravenous Glucose, Rifampicin, Ethambutol, Isoniazid, Frusemide, Digoxin and Prednisolone.

Source: The Global New Light of Myanmar

China’s RCEP regional new waterway to run through Yangon Port

by LOGISTICS

China has opened the Beibu Gulf Port-RCEP regional waterway which will make a brief stopover at the Yangon Port, and four cargo ships will run weekly, according to the announcement of the Chinese Embassy in Myanmar. It was mentioned in the announcement that the successful arrival of the “SITC Venus” cargo ship at the Qinzhou port zone in Beibu Gulf Port, Guangxi Province, on 28 October was the successful opening of the Beibu Gulf Port-Myanmar direct waterway.

Many reviews were released after the opening of the new waterway that another proper waterway was supposedly introduced between the Beibu Gulf Port and the RCEP region. The waterway will run with four cargo ships weekly. The ports of arrival are as follows: Qinzhou-Nansha-Shekou-Khlan-Yangon- Belawan-Khlan-Nansha-Shekou-Hai Phong-Qinzhou.

The disclosure of the new waterway will densify the international maritime network between Beibu Gulf Port and RCEP region, contribute to more convenient export-import channels for goods, and reduce a lot of logistic and storage costs of businesses. Export goods will reach Yangon, Myanmar, 12 days after the departure from the Qinzhou Port via the new waterway and the length of time the journey takes will be reduced by 40 per cent, according to the statement. 

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar
Announcement of Central Committee on
Prevention, Control and Treatment on
Coronavirus Disease 2019 (COVID-19)

by COVID

7th Waxing of Tazaungmone 1384 ME
30 October 2022

As it is necessary to continuously control the infection of Coronavirus Disease 2019 (COVID-19),
it is hereby announced that public requests, orders, notifications and directives (except for
easing the restrictions) released by the Union-level organizations and Union ministries up to 31
October 2022 have been extended until 30 November 2022 for prevention, control and treatment
of Coronavirus Disease 2019 (COVID-19).

Source: The Global New Light of Myanmar

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MoC to issue CO Form RCEP for free customs tariff to China from 1 Nov

by TRADING

The Trade Department under the Ministry of Commerce will issue Certificate of Origin (CO) Form RCEP to the products that originated in Myanmar and are designated to be exported to China so that the authorized traders can enjoy customs tariff relief, starting from 1 November. The Regional Comprehensive Economic Partnership-RCEP, a free trade agreement between the ten member states of ASEAN, Australia, China, Japan, the Republic of Korea and New Zealand has come into effect since January 2022.

According to the RCEP agreement, the CO form will be issued for the products that originated in Myanmar and that are to be sent to China to be free from customs duty from 1 November 2022. The exporters can apply for CO Form RCEP in compliance with the rules and regulations. Those traders can earn approved exporter status through an online CO application system https://onlineco.myanmartradenet.com from 1 November 2022. There are many trade benefits of being a member of RCEP. As per the agreement, tariff incentives are based on the development status of the states. They have agreed especially for Cambodia, Laos and Myanmar to have access to preferential tariffs and grant moderate tariffs to Viet Nam.

Additionally, the least developing countries will enjoy more exemptions according to a charter of the United Nations to support the Least Developed Countries (LDCs). For instance, the agreement stated Cambodia, Laos and Myanmar to be granted preferential tariffs over other states. The members of RCEP have to grant 65 per cent of custom tariff exemption in line with the agreement. However, Myanmar, Cambodia and Laos are entitled to give only 30 per cent tax-exempt to other entities. Afterwards, the members have to grant 80 per cent tax exemption ten years after the agreement is effective. Meanwhile, Myanmar is given a transition period for the trade sector of up to 15 years.

Moreover, the needs of the LDCs will be considered to implement the commitments under this agreement and enjoy customs duty relief while making efforts to spur trade and investment opportunities and participate in the regional and global trade and value chains. Myanmar, being a member of RCEP and the ASEAN, will get access to great opportunities to step up the international level in amending laws, policy framework and regulations for its trade and investment promotion and in the capacity of the governmental and private institutions. Likewise, Myanmar’s exports see vast foreign markets as the developed and technologically advanced countries are part of the RCEP (Japan, the ROK, Australia, New Zealand, and Singapore). In line with the agreement, responsible and accountable large investments will flow into the country for sure. 

Source: The Global New Light of Myanmar

92 Octane prices rebound to K2,000 per litre in Yangon market

by ENERGY

The fuel oil prices show a steady increase recently, and it reaches K2,000 per litre of 92 Octane in Yangon market, according to the market.

The price was below K2,000 per litre of 92 Octane for over two weeks starting early October and the prices were increasing slowly to K2,000 per litre of 92 Octane, K2,090 per litre of 95 Octane, K2,690 per litre of diesel and K2,775 per litre of premium diesel on 29 October.

In August, the fuel prices reached its highest rate at K2,605 per litre of 92 Octane, K2,670 per litre of 95 Octane, K3,245 per litre of diesel and K3,330 per litre of premium diesel in Yangon market. The Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated that domestic fuel prices are increasing as per the higher price index set by Mean of Platts Singapore (MOPS).

Source: The Global New Light of Myanmar

6-mln-gallon fuel oil unloaded at terminals of Thilawa Port, 14 mln more on way

by ENERGY

Over six million gallons of fuel oil have been unloaded from oil tankers at terminals of Thilawa Port and oil tankers carrying more than 14 million gallons are soon to be docked and oil unloading process will be undertaken, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. The committee is scrutinizing and importing fuel oil to have an adequate supply in the domestic markets. On 24 October, 0.91 million gallons of Octane 92, 2.55 million gallons of diesel and 1.34 million gallons of premium diesel were discharged from the MT Synergy tanker. On 25 October, 2.01 million gallons of Octane 92 were unloaded from the MT Aulac Vision ship.

Furthermore, the MT Yu Dong tanker carrying 2.76 million gallons of Octane 92, 0.92 million gallons of Octane 95 and 1.65 million gallons of diesel, the MT Harmony One ship carrying 3.07 million gallons of diesel and 3.07 million gallons of premium diesel and the MT Intan Premier carrying 2.67 million gallons will dock at the respective terminals and the unloading of fuel oil will be undertaken. That being so, there is an adequate supply of fuel oil depending on the inventory conditions of oil tanks, fuel stations and distribution.

The prices of Octane have been sliding this week, whereas the prices of diesel slightly rose. There is no significant price movement in the domestic fuel oil market. The committee is importing fuel oil to avoid a shortage in the market. A total of 2.26 million gallons of oil on 1 October, 5.05 million gallons on 3 October, 2.96 million gallons on 10 October and 6.92 million gallons on 12 October were unloaded respectively at the terminals of Thilawa Port. The fuel oil has gradually declined since the last week of September. On 27 October, the oil prices stood at K1,920 per litre of Octane 92, K2,015 for Octane 95, K2,610 for diesel and K2,695 for premium diesel. 

Source: The Global New Light of Myanmar

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Palm oil wholesale reference price regains to K4,000

by TRADING

The wholesale reference rate of palm oil in the Yangon market increased again to K4,000 per viss (a viss equals 1.6 kilogrammes), according to the Supervisory Committee on edible oil import and distribution. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil on a weekly basis. The reference prices of palm oil in the Yangon market were set at K4,175 per viss for this week from 25 and 30 October and K3,960 per viss for the week ending 24 October.

The reference price this week was up by over K200 per viss. Nevertheless, the current market price is too high compared to the reference price. If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to the consumers and maintain price stability.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They sell palm oil at K4,400 per viss to consumers directly. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. 

Source: The Global New Light of Myanmar