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Domestic oil price jumps to approximately K2,000 per litre on global cues

Fuel oil prices inched higher, around K2,000 per litre in the domestic market on the devaluation of Kyat against the US dollar and a sharp increase in crude oil prices, the market data in the Yangon Region showed. According to a market observer, the rumours spreading in the domestic market, setting a sales limit at the retail stations, and panicked consumers’ buying are other problems of price hikes. The prices soared to nearly K2,000 for Octane 92, K2,025 for Octane 95, K2,320 for diesel and K2,350 for premium diesel on 2 May 2022.  On 1 January 2022, the prices stood at K1,390 for Octane 92, K1,440 for Octane 95, K1,375 for diesel and K1,385 for premium diesel.

According to the local fuel oil market, there is a large gap of K600-960 per litre within four months. The fuel oil price is highly correlated with the foreign exchange rate. The exchange rate is now pegged at around K2,000 at the unofficial exchanges. When a dollar was valued at only K1,330 in early February 2021, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel then in the domestic retail market. Additionally, domestic oil prices are positively related to the global market. Oil prices jumped in the worldwide market as the Russia-Ukraine crisis escalated, with US$104.2 per barrel for WTI crude and $106.5 for Brent crude at present.

Additionally, the Central Bank of Myanmar has directly sold over $87 million to the fuel oil sector so far.
Myanmar has inventories of about 45 million gasoline and 70 million diesel. According to the Petroleum Products Regulatory Department under the Ministry of Electricity and Energy, there is no need to worry about a shortage of fuel oil. Myanmar imports oil from Singapore, Malaysia and the Republic of Korea. The rumour raised the concerns of the consumers and resulted in panic buying. Consequently, the Petroleum Products Regulatory Department stated that the retail stations were out of hand. Usually, Myanmar yearly imports six million tonnes of fuel oil from external market, the Ministry of Commerce stated. 

Source: The Global New Light of Myanmar

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Thailand’s PTTEP and Malaysia’s Petronas to withdraw from Yedagun gas project

Thailand’s PTTEP Oil and Gas and Malaysia’s Petronas announced on April 29 that they would withdraw from Myanmar’s Yedagun gas project. International energy companies, including Chevron and Total Energies, have left Burma en masse after a military coup in Burma last year. Carigali, a subsidiary of Petronas, has a 41 per cent stake in the Yedagun project, with PTTEP holding a 19.31 percent stake.

“The resignation is part of the company’s investment management plan, which will focus on projects that support the country’s energy security,” PTTEP chief executive Montrey Wanchaiku said in a statement on April 29.  Located in the Gulf of Martaban, the 24,130-square-kilometer project produces natural gas and liquefied natural gas.

As a result, only Nippon Oil and Gas Exploration Company of Japan and the Myanmar Oil and Gas Company, which is affiliated with the Burmese Army, remain in the project.

Source: Daily Eleven

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The $ 2.5 billion Irrawaddy Region Mee Lin Chaing project includes an LNG power plant and a gas pipeline to Myanmar will be included in the list of early projects on the China-Myanmar Economic Corridor

The $ 2.5 billion Irrawaddy Region Mee Lin Chaing project, which will include an LNG power plant and a gas pipeline to Rangoon, will be included in the list of early projects on the China-Myanmar Economic Corridor, according to the statement. Three Chinese companies: Union Resources and Engineering Company (41%); Yunnan Energy Investment (39%) and Zhefu Holding Group (1%) have partnered with Myanmar’s Supreme Group (19%) to launch a 1,390-megawatt LNG project.

The plant in Ayeyarwady Region includes an LNG power plant; LNG storage; These include high voltage transmission lines and gas pipelines to Yangon. The project has been approved by the Myanmar Investment Commission and is expected to be commercially operational by 2027. In addition, the Myanmar government will propose to include the priority energy project, which has an estimated investment of $ 2.5 billion, to accelerate its growth, as part of the Sino-Burmese Economic Corridor’s initial plans.

CNPC’s China-Myanmar oil and gas pipeline project is CNPC’s largest investment in Myanmar and a key focus of the Silk Road project. Acceleration of some gas-fired power plants (gas-fired) and other gas-fired power plants or waste-to-energy projects for immediate 30 megawatts of electricity; At present, Kyaukphyu generates about 100 megawatts of electricity using 20 million cubic feet of natural gas. 

Once the pipeline is maintained, it will expand to 30 million cubic feet per day and generate 195 megawatts. Despite sanctions, Myanmar is simultaneously working on repairing damaged power lines and developing hydropower and renewable energy as it seeks to increase foreign investment. Recent media coverage of energy shortages in Myanmar; Union Minister for Information Maung Maung Ohn and Union Minister for Investment and Foreign Trade Aung Naing Oo issued a joint statement in response to recent media reports on the departure of foreign energy companies and sanctions on Myanmar.

Source: Daily Eleven

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The Ministry said run out of petrol cannot be happened having about 45 million gallons of petrol and 70 million gallons of diesel including Thilawa reservoirs

About 45 million gallons of petrol and 70 million gallons of diesel are left in the country, including at Thilawa reservoirs, so running out of petrol cannot be happened said the Ministry of Electricity and Energy. On April 19, People Media and MHT News responded to a question from the Ministry of Electricity and Energy on the Viber Group of the State Governing Council Information Team on the news of the fuel leak. Rumors have been circulating on social media that fuel stocks are running low at Thilawa oil depots. 

Today, about 45 million gallons of petrol and 70 million gallons of diesel are left in the country, including at the Thilawa reservoirs, according to the Petroleum Products Inspection Department. At present, there are two vessels that have not yet refueled due to the Thingyan holiday, so there will be no shortage of domestic fuel, according to the Petroleum Products Inspection Department. It has also been circulating on social media that it is not being imported from China to Sri Lanka through intermediaries. Malaysia and Korea are the main importers. 

According to the Petroleum Inspection Department, no shops were closed except for those that were being repaired with the permission of the department. The department also has the relevant committee, Ministries of Commerce; The Petroleum Importers and Distributors Association (MPTA) is cooperating with the Petroleum Importers and Distributors Association (MPTA) and will soon return to normal, and it will be announced soon that petrol stations will resume normal sales, according to the Petroleum Products Inspection Department. The Department of Petroleum Products Inspection said that the department is issuing reference prices on a daily basis and is monitoring the public to buy and use them at reasonable prices in a fair and free and fair market.

Source: Daily Eleven

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Thai company to take over Myanmar gas block after Total leaves

Following the departure of global energy giants Chevron and Total-Energies in January, Thailand’s PTTEP has said it will take over the Yadana gas field, which is key to Myanmar. The US and French companies have said they will withdraw from operating in Burma as international pressure to cut off financial ties with Burma’s Nasaka government after human rights groups seized control of the country last year.

The Yadana gas field in the Andaman Sea, which supplies electricity to Myanmar and Thailand, is one of Burma’s largest foreign-funded natural gas projects, earning more than $ 1 billion annually, according to Human Rights Watch (HRW). Following Total Energies’ decision to withdraw from the Yadana project, PTTEP has carefully considered taking the next step in ensuring uninterrupted supply of natural gas. PTT Exploration and Production Public Company (PTTEP) said in a statement issued on March 14.

PTTEP, a unit of Thai state-owned energy company PTT, will take over operations from July 20 to resume gas production and prevent power outages, he said. The block blocks about 50 percent of Myanmar’s natural gas needs. It blocks 11% of Thailand’s demand. In recent weeks, Burma has been hit by severe power outages and even queues for water in Rangoon, the economic capital, with the Nasaka government blaming rising fuel prices and terrorist attacks on infrastructure. Nasaka says it controls and benefits the country’s vast economy, including oil and gas. Other international companies, including British American Tobacco and French renewable energy company Voltalia, have left operations in Myanmar since February last year.

Source: Daily Eleven

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Fuel oil price in Ygn market surge up to
over K1,900 per litre

The price of fuel oil surged up to over K1,900 per litre in the Yangon domestic market, according to the fuel oil filling stations. The fuel oil price in other states and regions are ranging between over K2,000 per litre depending on the transport charges. The retail prices of fuel in the Yangon market on 1 January stood at K1,375 per litre for diesel, K1,385 for premium diesel, K1,390 for Ron 92 petrol and K1,440 for Ron 95 petrol.

On 1 March, the fuel oil prices in the Yangon market hit K1,925 per litre for diesel, K1,935 for premium diesel, K1,910 for Ron 92 petrol and K1,965 for Ron 95 petrol. Consequently, the cost per litre of fuel oil rose from over K520 to K550 per litre in over two months. The weakening kyat and rising international crude oil prices have combined to push the cost of fuel oil, it is learnt. Currently, the exchange rate for the US currency has reached around K2,000. The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar in early February 2021.

At that time, the price of fuel in the Yangon market fetched K590 per litre for diesel, K605 for premium diesel, K590 for Ron 92 petrol and K610 for Ron 95 petrol. The Central Bank of Myanmar (CBM) is conducting an auction for foreign exchange to reduce the sudden fluctuation of foreign exchange rates. This year, the bank has already sold K65 million in January and K15 million in February. 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. From 15 September to 19 January, about $140.90 million were sold to the fuel oil sector at the reference rate of the CBM. Myanmar imports around six million tonnes of fuel oil per year, according to the Ministry of Commerce. 

Source: The Global New Light of Myanmar

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Domestic oil price surges on global cues in late February

Fuel oil prices are constantly edging up on the depreciation of Kyat against US dollar and a sharp increase in crude oil prices in the past two days, according to the filling stations in Yangon Region. On 1 January 2022, the prices stood at K1,390 for Octane 92, K1,440 for Octane 95, K1,375 for diesel and K1,385 for premium diesel, whereas the prices inched higher to K1,745 for Octane 92, K1,800 for Octane 95, K1,720 for diesel and K1,730 for premium diesel. There is a price gap of K345-360 per litre within two months, according to the local fuel oil market.

The fuel oil price is highly correlated with the foreign exchange rate. At present, the exchange rate is pegged at around K2,000 in the local forex market. Additionally, domestic oil price is positively related to global market. Oil prices jumped in the global market as Russia-Ukraine crisis escalated, with US$91.59 per barrel for WTI crude and $97.93 for Brent crude at the present time. When a dollar was valued only K1,330 in early February 2021, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel then in domestic retail market.

Consequently, in a bid to steer dollar rally in local forex market, the Central Bank of Myanmar (CBM) sold US$65 million at its auction market rate in January this year. Additionally, the Ministry of Commerce in coordination with Myanmar Petroleum Trade Association implemented a scheme to distribute fuel oil at fairer rate through the government sponsored filling station chains starting from 22 September 2021. 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 over $87 million to the fuel oil sector so far. Normally, Myanmar yearly imports 6 million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

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Fuel oil prices in Ygn market inching upward up to over K1,700 per litre

The fuel oil price in the Yangon market is inching upward up to over K1,700 per litre, according to the fuel oil stations. The fuel oil price in other states and regions are ranging between over K1,800 and K1,950 per litre depending on the transport charges. The retail prices of fuel in the Yangon market on 1 January stood at K1,375 per litre for diesel, K1,385 for premium diesel, K1,390 for Ron 92 petrol and K1,440 for Ron 95 petrol. On 10 February, the fuel oil price in the Yangon market hit K1,690 per litre for diesel, K1,700 for premium diesel, K1,655 for Ron 92 petrol and K1,710 for Ron 95 petrol.

As a result, the cost per litre of fuel oil rose from over K260 to K315 per litre in over one month. A weakening kyat and rising international crude oil prices have combined to push the cost of fuel oil, it is learnt. Currently, the exchange rate for the US currency has reached around K1,990. The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar in early February 2021. At that time, the price of fuel in the Yangon market fetched K590 per litre for diesel, K605 for premium diesel, K590 for Ron 92 petrol and K610 for Ron 95 petrol.

The Central Bank of Myanmar (CBM) is conducting an auction for foreign exchange to reduce the sudden fluctuation of foreign exchange rates. This year, the bank has already sold K65 million in January and K15 million in February. 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. From 15 September to 19 January, about $140.90 million were sold to the fuel oil sector at the reference rate of the CBM. Myanmar imports around six million tonnes of fuel oil per year, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

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CBM sells US$150 million to fuel oil sector

The Central Bank of Myanmar (CBM) sold US$150 million to the fuel oil sector, according to the Consumer Affairs Department. The CBM sold $140.90 million countless times to the fuel oil imported companies at the references rate of a minimum of K1,753 and a maximum of K1,820 between 15 September 2021 to 19 January 2022. Of them, more than 151 million litres of fuel oil worth $103.90 million are being distributed to the market. Of over 151 litres of fuel oil, more than 144 million litres have been distributed so far and the remaining only over 71 litres are left to sell to the market, said an official from the Consumer Affairs Department.

Besides, the CBM sold $37 million to the fuel oil imported companies at the reference rate of K1,781 from 12 January to 19 January. But all the fuel oil isn’t distributed yet. The volumes of fuel oil, equivalent to $37 million have remained for sale. 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, Consumer Affair Department and Myanmar Petroleum Trade Association. At present, the 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.

A dollar is worth around K2,000 in the domestic foreign exchange market. On 28 January, the fuel prices were K1,610 per litre of diesel, K1,620 per litre of premium diesel, K1,590 per litre of petrol (RON 92) and K1,650 per litre of petrol (RON 95), according to figures released by the Myanmar Petroleum Trade Association (MPTA). The price hike is attributed to the devaluation of Kyat in the foreign market. Currently, the US dollar exchange rate still reached a record high in Myanmar of around K2,000 per dollar. In early February 2021, the exchange rate on the US dollar hit around K1,330 per dollar. 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. Myanmar imports around six million tonnes of fuel oil per year, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

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Oil price rally continues on stronger dollar

Fuel oil prices are steadily rising on global cues and touch a high of K1,600 per litre, according to petrol stations in Yangon Region. The prices of fuel oil in the domestic market, tracking the Kyat weakening against US dollar, the
market’s data indicated. On 1 January 2022, the prices stood at K1,390 for Octane 92, K1,440 for Octane 95, K1,375 for diesel and K1,385 for premium diesel, whereas the prices inched higher to K1,565 for Octane 92, K1,615 for Octane
95, K1,590 for diesel and K1,600 for premium diesel. There is a price gap of K170-K200 per litre within a month, according to the local fuel oil market.

The fuel oil price is highly correlated with the foreign exchange rate. At present, the exchange rate is pegged at around K2,000 in the local forex market. Additionally, the domestic oil price is positively related to the global market. Declining inventories and supply disruptions push oil prices higher in the global market, with US$83.99 per barrel for WTI crude and $87.11 for Brent crude at present. 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 $65 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 a fairer rate through the government-sponsored petrol station chains starting from 22 September 2021. 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 over $87 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