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Fuel price on gradual rise above K1,400 per litre

All types of fuel oil have been priced at above K1,400 per litre, indicating a steady increase in prices, according to Yangon petrol stations. On 30 December 2021, the prices stood at K1,340 for Octane 92, K1,390 for Octane 95, K1,315 for diesel and K1,325 for premium diesel in Yangon, whereas it jumped to K1,445 for Octane 92, K1,495 for Octane 95, K1,440 for diesel and K1,450 for premium diesel on 11 January 2022. There is a price gap of over K100 per litre within two weeks, according to the local fuel oil market.

The fuel oil price is highly correlated with the exchange rate. At present, the exchange rate stands at around K2,000 in the local forex market. When a dollar was valued at only K1,330 in early February last year, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Consequently, in a bid to steer the dollar rally in the local forex market, the Central Bank of Myanmar (CBM) sold US$15 million at its auction market rate in January this year.

Additionally, the Ministry of Commerce in coordination with the Myanmar Petroleum Trade Association carried out a scheme to distribute fuel oil at fairer rates through the government-sponsored petrol station chains. The total volume of fuel oil that are sold at very cheap rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the CBM. The oil has been distributed at the subsidized rate starting from 22 September. The CBM has directly sold $53.4 million to the fuel oil sector so far. Normally, Myanmar yearly imports six million tonnes of fuel oil from external markets, the Ministry of Commerce indicated.

Source: The Global New Light of Myanmar

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Public request regarding lower electricity production rate of power plants

5 January 2022

  1. The Ministry of Electricity and Energy makes strenuous efforts for electricity generation and distribution from power plants for the people and industries in respective regions/states and also arranges to improve electricity supply in order to cover an annually increasing power consumption.
  2. Normally, the maximum power generation capacity is about 4,200MW, but now about 750MW production of the LNG to power plants have been suspended due to a fourfold increase in gas prices. The annual maintenance works on Yadana offshore project were conducted between 27-11-2021 and 6-1-2022 like previous years and so the power generating rate of natural gas power plants decreased about 540MW, and the 230kV transmission tower of Balu Chaung hydropower station was exploded and about 180MW was reduced.
  3. Moreover, the annual maintenance works are being undertaken at some gas-fired power plants and hydropower stations and due to the lower inflow of water to hydropower plants in the current open season and the reduction of hydropower generation at the reservoirs/dams to supply power in summer, the production is about 1,470MW lower than the total consumption. If the maintenance of the Yadana gas project completes, the power can be generated normally starting 7-1-2022, and although the repair works of destroyed towers are being made as quickly as possible, about 930MW will be still reduced.
  4. Therefore, due to the adjustment for the stability of power system as per the amount of low power generation, there is a need to reduce the load during high power consumption hours between 7 am to 11 am and between 5 pm to 7 pm, and so the power outages occur in some places.
  5. Of 10.9 million households in the country, about 6.6 million (60 per cent) currently have access to electricity from the National Grid. If these households use low-power-consumption LED bulbs/lights, it can save about 20W per household while 6.6 million households about 132MW. Moreover, if the households with high power consumption swift off unnecessary lights to save about 100W per household and about 300MW for three million households, and so it can fulfil the reduction of 432MW and the meter bill payment of one household will also be lower.
  6. Therefore, the Ministry of Electricity and Energy raise a request to the public to understand if there are any inconveniences caused by the reduction of load in some areas for lower power generation for balance load and are working hard to supply power as quickly as possible and arranging new projects to produce power more from various sources, including solar and hydropower.

Ministry of Electricity and Energy

Source: The Global New Light of Myanmar

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Interested bidders are invited to conduct a preliminary survey of four new hydropower projects in the Tanintharyi River Basin

The Ministry of Power and Energy has invited companies interested in conducting tenders for four new hydropower projects in the Tanintharyi River Basin to conduct feasibility studies. Hydropower Implementation Department; The tender form and details for the feasibility study for four new hydropower projects in the Tanintharyi River Basin will be available from 14 to 28 January 2022 at Office No. 27; It will be sold at the front gate. Tender bids must be submitted by May 16, 2022. The tender acceptance and scrutiny committee has announced that the tender must be submitted to the meeting hall (Office No. 27, Three Storey Building, New Office, Nay Pyi Taw) and the tender advertisement form can be accessed on the website of the Ministry of Electricity and Energy.

In the 2019-2020 fiscal year, 3,225 megawatts will be generated from hydropower, depending on the energy source. 2773 MW from natural gas; 40 megawatts of solar power; According to the Ministry of Power and Energy, LNG has generated 900 megawatts and coal from 120 megawatts for a total of 7,058 megawatts. Hydropower accounts for 46% of total electricity generation; 39% from natural gas; 13% from LNG; One percent is made from solar and two percent from coal. 3181 MW from hydropower in 2015-2016 fiscal year; 1752 MW from natural gas; Coal generates 120 megawatts for a total of 5,053 megawatts. 63% from hydropower; 35% from natural gas and 2% from coal.

In the 2018-2019 fiscal year, 11,227.82 million kilowatt-hours of hydropower generation will be generated. 9366.56 million kilowatt hours from natural gas; 2,169.70 million kilowatt hours from steam; Diesel generates 104.73 million kilowatt hours. In the fiscal year 2017-2018, 12,265.03 million kilowatt hours from hydropower; 7,459.22 million kilowatt-hours from natural gas; 1,080.60 million kilowatt hours from steam; Diesel generates 77.55 million kilowatt hours. In the 2016-2017 financial year, 12,265.03 million kilowatt hours from hydropower; 7,459.22 million kilowatt-hours from natural gas; 1,080.60 million kilowatt hours from steam; Diesel generates 77.55 million kilowatt hours.

The annual capacity of the Ministry of Electricity and Energy was 15965 million units in the 2015-2016 fiscal year. 17867 million units in the 2016-2017 financial year; In the fiscal year 2017-2018, million units 200555; Production increased to 22,879 million units in the 2018-2018 fiscal year and 27,300 million units in the 2019-2020 fiscal year. If we look at the per capita electricity consumption increase year by year, in the 2015-2016 financial year, 263 kWh; 301 kWh in the 2016-2017 financial year; 335 kilowatt hours in the 2017-2018 fiscal year; In the 2018-2019 fiscal year, it was 379 kilowatt hours and in the 2019-2020 fiscal year, it increased to 432 kilowatt hours, and in five years it increased to 169 kilowatt hours.

Source: Daily Eleven

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Fuel oil price edges up on Kyat depreciation

The prices of fuel oil remained on the upward trend in the domestic market, tracking the Kyat weakening against the US dollar, the market’s data indicated. On 1 December, the prices stood at K1,250 for Octane 92, K1,300 for Octane 95, K1,230 for diesel and K1,240 for premium diesel, whereas it jumped to K1,340 for Octane 92, K1,390 for Octane 95, K1,315 for diesel and K1,325 for premium diesel. There is a price gap of K85-90 per litre within a month, according to the local fuel oil market.

The fuel oil price is highly correlated with the exchange rate. At present, the exchange rate is pegged at around K1,900 in the local forex market. When a dollar was valued at only K1,330 in early February, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Consequently, in a bid to steer the dollar rally in the local forex market, the Central Bank of Myanmar (CBM) sold US$88 million at its auction market rate in December.

Additionally, the Ministry of Commerce in coordination with the Myanmar Petroleum Traders Association carried out a scheme to distribute fuel oil at a fairer rate through the government-sponsored petrol station chains. The total volume of fuel oil that are sold at very cheap rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the CBM. The CBM has directly sold $53.4 million to the fuel oil sector so far. Normally, Myanmar yearly imports six million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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US$20 mln worth of fuel oil to be distributed at fairer prices in third batch

The Consumer Affairs Department under the Ministry of Commerce stated that fuel oil valued at US$20 million will be sold at the subsidized price in the third batch. The fuel importers directly spent $20 million at the reference rate of the Central Bank of Myanmar (CBM) to distribute 30 million tonnes of fuel oil. So far, over 26 million tonnes of fuel oil have been sold. Over 11 million litres of 92 Ron, over four million litres of diesel and 10 million litres of premium diesel have been sold.

At present, the oil is distributed through 136 filling stations in Yangon, Mandalay, Nay Pyi Taw, Ayeyawady, Magway, Bago and Sagaing regions, Mon, Shan, Rakhine and Kachin states. The consumers can complain about overcharging for fuel oil which is sold at the subsidized rate under a public distribution system, the Ministry of Commerce stated. If any overcharging is found, the consumers can complain about it through the contact numbers (09664075683, 09664596327, 09687635943, 09676320826) of the Central Committee on Ensuring the Smooth Flow of Trade and Goods (01 250270) of the Yangon Region Consumer Affairs Department and (09421006794) of the Myanmar Petroleum Trade Association.

In the first batch, $20 million worth of fuel oil were sold, while $13.4 million valued oil was distributed in the second batch. The Ministry of Commerce has purchased $53.4 million worth of fuel at the reference rate of the CBM for the fuel oil sector. The fuel oil was pegged at around K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Then, it remarkably climbed up to K1,245 for Octane 92, K1,295 for Octane 95, K1,220 for diesel and K1,230 for premium diesel in the first week of December. There is a remarkable price gap of K600 per litre, according to the local fuel oil market. Normally, Myanmar yearly imports six million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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Imports of petroleum products exceed US$ 2.6 bln in FY2020-2021

Myanmar imported more than US$2.6 billion worth of petroleum products in the financial year 2020-2021, as per the Myanmar Customs Department. At present, the domestic fuel oil price is still bullish as the coronavirus negative impacts sparked oil demand concerns, coupled with Kyat depreciation. The fuel oil was pegged at around K620 per litre for Octane 92, K750 for Octane 95, K660 for diesel and K670 for premium diesel in early February 2021 in the domestic retail market. On 26 Nov, it rallied to K1,310- 1,335 for Octane 92, K1,360-1,385 for Octane 95, K1,265-1,295 for diesel and K1,275-1,305 for premium diesel, according to local fuel oil market.

Domestic oil price is positively related to the global market and the dollar exchange rate. The soaring demand drives up the oil prices rally higher. Additionally, a foreign exchange rate also affects the petroleum price. Kyat is weakening in the local forex market, with around K1,800 per dollar on 26 November. In mid-February, a dollar was worth only K1,430. Normally, Myanmar imports fuel oil primarily from Singapore, with monthly volumes touching 200,000 tonnes for gasoline and 400,000 tonnes for diesel. There are about 2,000 fuel stations and over 50 oil importer companies in Myanmar, Myanmar Petroleum Trade Association stated.

In early June 2021, the Ministry of Electricity and Energy notified the private sector of keeping the oil storage above 35 per cent of the storage capacity of the tanks to avoid the possible discrepancy between demand and supply. Last year, the domestic oil prices have declined to start from January owing to a fall in global oil prices. On 8 January 2020, oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Following the global market crashing, the domestic oil price plunged to more than 50 per cent in April against January’s prices. In late April 2020, the oil prices touched the lowest of K290-330 per litre for Octane 92, K430-455 for Octane 95, K435- 465 for diesel, and K445-475 for premium diesel, according to the domestic oil market. Ninety per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally.

Source: The Global New Light of Myanmar

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Fuel oil imported with CBM exchange rate to distribute at reasonable price

US$53.4 million worth of fuel oil has been imported with the Central Bank of Myanmar (CBM) exchange rate to distribute at a reasonable price, according to the Consumer Affairs Department. The CBM has already sold $53.4 million to our Myanmar Petroleum Trade Association (MPTA). But, they still have some dollars to withdraw from the bank. Currently, the retail stations are still selling the $20 million worth of fuel oil. They are also making effort to sell the remaining over $33 million worth of fuel oil through the retail stations. They are also carrying out the distribution plan, said an official from the Consumer Affairs Department.

MPTA, in cooperating with the Ministry of Commerce has sold fuel at a fair price since 22 September, which is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar. The Consumer Affairs Department stated that more than 51 million litres of fuel oil were sold at a reasonable rate between 22 September and 2 November 2021. Out of them, the association ended over 19 million litres of 92 Ron, over 12 million litres of diesel and over 18 million litres of premium diesel. The fuel oil at the fairer price is available at 229 petrol-filling stations in Yangon, Mandalay, and Nay Pyi Taw cities and Mon, Shan, Kachin, Kayin and Rakhine states and Sagaing, Bago, Magway and Ayeyawady and Taninthayi regions.

If the consumers find the shops that are not being sold at the fixed price, they are urged to report to the Working Committee on Ensuring the Smooth Flow of Trade and Goods, calling 09-664075683, 09-664596327 and 09-676320816, to Yangon consumer affair department 01- 250270 and Myanmar Petroleum Trade Association 09-421006794. The fuel oil was pegged at around at K590 per litre for diesel, K605 for premium diesel, K590 for Octane 92 and K610 for Octane 95 in early February 2021 in the domestic retail market. Then, it strangely climbs up to K1,340 for diesel, K1,355 for premium diesel, K1,420 for Octane 92 and K1,4850 for Octane 95 at present. There is a significant price gap of K700-800 per litre, according to the local fuel oil market. The devaluation of the local currency is the main reason for the oil price hike in the domestic market. At present, a dollar is worth around K1,900 in the domestic foreign exchange market. Normally, Myanmar yearly imports around 600,000 tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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Over 51 mln litres of fuel oil sold at fairer prices within one and half months: CAD

The Consumer Affairs Department stated that more than 51 million litres of fuel oil were sold at the subsidized rate between 22 September and 2 November 2021. Starting from 22 September, the total volume of fuel oil that is sold at very reasonable rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar, intending to offer fairer rates through the relevant association. Over 19 million litres of 92 Ron, 12 million litres of diesel and 18 million litres of premium diesel have been sold.

The fuel oil at the fairer price is available at 229 petrol-filling stations in Yangon, Mandalay, and Nay Pyi Taw cities and Mon, Shan, Kachin, Kayin and Rakhine states and Sagaing, Bago, Magway and Ayeyawady and Taninthayi regions. Consumers can complain about overcharging for fuel oil which is sold at the subsidized rate under the public distribution system. If any overcharging is found, the consumers can complain about it through the contact numbers 09664075683, 09664596327, 09687635943 and 09676320826 of the National Trade Facilitation Committee, (01250270) of Yangon Region Consumer Affairs Department and 09421006794 of the Myanmar Petroleum Trade Association.

The fuel oil was pegged at around at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Then, it remarkably climbs up to K1,425 for Octane 92, K1,490 for Octane 95, K1,370 for diesel and K1,380 for premium diesel at present. There is a remarkable price gap of K700-800 per litre, according to the local fuel oil market. A dollar is worth K1,900 in the local forex market. Normally, Myanmar yearly imports six million tonnes of fuel oil from external markets, the Ministry of Commerce stated. 

Source: The Global New Light of Myanmar

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There were over $ 3,100 million of foreign investment in Myanmar’s energy sector in fiscal year 2020-2021

From October to the end of September of the 2020-2021 fiscal year, more than $ 3,100 million in foreign investment in Myanmar’s energy sector, according to the Directorate of Investment and Company Administration. By 2021, Myanmar’s Generation Mix will generate 40 percent of its electricity from hydropower, 34% from natural gas.

Solar will account for 14 percent and will increase to more than 8,100 megawatts, according to the Ministry of Power and Energy. Myanmar had only 34% access to electricity before 2016, but will increase to 56% by 2020.  According to the Ministry of Power and Energy, efforts are being made to achieve 75% of the country’s electricity by 2025 and 100% by 2030. Myanmar’s energy resources are mainly based on renewable energy such as hydropower and solar energy and clean energy such as natural gas and LNG.

Upper Kengtung Hydropower Project, 51 MW for Myanmar’s electricity needs; 280 MW Upper Yeywa Hydropower Project; According to the Ministry of Power and Energy, four projects are underway: the 152-megawatt Central Paunglaung Hydropower Project and the 111-megawatt Thu Htay Hydropower Project. In 2016, the Ministry of Electricity and Energy generated 48,000 megawatt-hours per day from various sources and is now increasing to 65,000 megawatt-hours per day. It is generating 3,225 megawatts of electricity from 28 hydropower plants.

Source: Daily Eleven

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Fuel prices fall in Yangon

The fuel prices in Yangon City have risen to the recorded high in recent months, but have fallen slightly on recent days, according to filling stations of Yangon. The fuel prices drop recently. The officials notified the stations of selling at normal prices since last month.

According to a taxi driver who has been driving a taxi for over a decade, he has never faced such difficulties before. He stopped his driving as the fuel prices were drastically high last months. Myanmar’s economic market also creeps up faster than the planes. Although it has been creeping up quickly, it drops in a slow momentum. But people get used to facing such case in Myanmar. In September, the Ministry of Commerce and Myanmar Fuel Importers Association jointly conducted the measures to sell the fuel at the fairer prices at 231 filling stations across the nation.

Due to the queuing of vehicles at these designated fuel stations in Yangon, some stations reduce the prices than the fixed ones and liters, according to car owners. At these designated filling stations across the nation including Yangon, they sold at K1,122 per litere for Ron 92 while K1,117per litre for diesel and K1,124 per litere for premium diesel starting 22 September. However, these stations are currently run out of allocated oil and they sell as usual. The fuel prices in Yangon yesterday were K1,455 per litre for 92 octane, K1,490 per litre for 95 octane, K1,470 per litre for diesel and K1,475 per liter for premium diesel. Although the prices of fuel are different depending on the station, they become lower than before.

Source: The Global New Light of Myanmar