Posts in category: ENERGY

The current retail price of diesel dropped to a seven-month low in late March, said a truck owner. On 22 March, the retail prices were up by K75 per litre for Octane 92 and K60 for diesel. On 7 August 2021, the prices stood at K1,615 per litre of Octane 92 and K1,970 for diesel. On 21 March 2023, retail reference prices for Yangon Region were K1,815 per litre of Octane 92, K2,050 for Octane 95, K2,000 for diesel and K2,080 for premium diesel.

The current diesel price is near the low price recorded seven months ago. Meanwhile, the Octane price is still up by K350 per litre compared to that recorded in August 2021. At present, transportation sectors see launching ceremonies of Electric Vehicles (EVs). It could cut fuel consumption to a certain extent.

Following the dip in world crude oil prices, fuel oil prices sank to below K2,000 per litre. Diesel prices plunge so the freight forwarding businesses save some cost. The public is a little unknown of the price decline. Nonetheless, those engaged in the transportation sectors and agriculture industries blamed the price increase of fuel oil along with other inputs such as fertilizer. 

Source: The Global New Light of Myanmar

The prices of Octane exceeded diesel in the retail market on 16 March 2023, tracking the positive global cues. The fuel prices were K2,150 per litre of Octane 92, K2,235 for Octane 95, K2,135 for diesel and K2,215 for premium diesel in Yangon markets. On 16 March, the prices stood at K2,041 per litre of Octane 92, K2,124 for Octane 95, K2,031 for diesel and K2,105 for premium diesel. The crude oil price plunged to a 15-month low at US$67.55 per barrel.

In August 2022, the oil prices surged to K2,605 per litre for Octane 92 and K3,245 for diesel. The diesel price is way higher than the Octane price. The price of diesel became lower than Octane on 16 March. The price decrease of diesel will facilitate freight forwarding businesses. Since May 2015, the Octane price has been cheaper than diesel. In 2008, diesel price was around K300,000 per barrel.

The price exceeded K79,000 per barrel on 21 February 2009, Ko Soe Min, a freight forwarder, told the Global New Light of Myanmar (GNLM). Diesel is primarily used in freight forwarding businesses, generators and machinery. The price drop might save some cost. Sharp fall in crude oil prices on positive global cues weight on the domestic fuel market as well, and market observers shared their opinions. 

Source: The Global New Light of Myanmar

Domestic fuel oil market sees price spikes. The prices have been volatile since February. On 10 March, the prices touched a high of K2,150 per litre of Octane 92, K2,235 for Octane 95, K2,175 for diesel and K2,255 for premium diesel. The domestic fuel prices are set depending on the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. Last August 2022, the oil prices surged to K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel and K3,245 for diesel.

The committee is therefore governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and to ensure price stability for energy consumers. The Petroleum Products Supervision and Inspection Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate in Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general cost and health profit percentage.

The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily covered 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. The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate. As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally.

The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those 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 levies 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

The opening ceremony of Myanmar’s very first EV Charging Station was held at Thabyaygon market in Nay Pyi Taw yesterday. It was attended by the Union ministers, the chairman of Nay Pyi Taw Council, the deputy ministers, the deputy mayor of Nay Pyi Taw, the permanent secretaries and officials. Nay Pyi Taw Council Chairman U Tin Oo Lwin remarked and Chairman U Naing Phyo Kyaw of NPK Motor Co Ltd explained the establishment of the MG EV Charging Station (NPT).

Then, Union Commerce Minister U Aung Naing Oo, Union Construction Minister U Myo Thant and Nay Pyi Taw Council Chairman U Tin Oo Lwin cut the ceremonial ribbon to inaugurate the charging station and Union Information Minister U Maung Maung Ohn pressed the electric button to launch the signboard of the Electric Vehicle Charging Station. Then, the attendees observed the MG EV Charging Station (NPT) and conducted the test driving of electric vehicles.

The National-level Leading Committee on Development of Electric Vehicles and Related Businesses launched pilot projects of establishing charging stations in Nay Pyi Taw, Yangon, Mandalay and along the Yangon-Mandalay Expressway under the guidance of the SAC Chairman Prime Minister. NPK Motor Co Ltd opened the first charging station in Nay Pyi Taw and will operate the EV taxis, and plans are underway to establish further charging stations across the nation.

Source: The Global New Light of Myanmar

The Department of Electric Power Planning under the Ministry of Electric Power signed a Memorandum of
Agreement (MoA) on wind power projects to be launched in An, Gwa and Thandwe townships of Rakhine State with the Primus Advanced Technologies Limited, Asia Ecoenergy Development Limited and Yunnan Machinery and Equipment Import and Export Co Ltd in Nay Pyi Taw yesterday. The signing ceremony was attended by Union Minister for Electric Power U Thaung Han, Deputy Minister U Aye Kyaw, Chinese Ambassador to Myanmar Mr Chen Hai, Directors-General, Managing Directors and Departmental Heads of Union Minister’s Offices, departments and enterprises and other officials of the Primus Advanced Technologies Limited, Asia Ecoenergy Development Limited and Yunnan Machinery and Equipment
Import and Export Co Ltd.

First, Union Minister U Thaung Han said that energy security is an essential aspect for all people and there are limitations to energy resources. The agreement is made by Myanmar citizen-owned PRIMUS, Hong Kong- based AED and China’s YMEC for the An wind power project (150 MW), Gwa wind power project (100 MW) and Thandwe wind power project (110 MW). It also should follow the law, bylaws and procedures set by the Ministry of Natural Resources and Environmental Conservation not to affect the environment and society. Efforts should be made to generate power from three projects by 2025 and to start the construction for the first phase of the 50 MW Gwa project in December 2023.

Then, the Chinese ambassador talked about the benefits of projects between Myanmar which is rich in natural resources and China which is the largest electricity-generating country in the world, participation of China in the nationwide electrification project of Myanmar, a new step of China in establishing the very first wind power projects of Myanmar and possession of the world’s largest installed base of wind power capacity with 400 million kilowatt-hours. Then, Vice-President Mr Dong Fan of Yunnan Machinery and Equipment Import and Export Co Ltd (YMEC) reported on the project procedures. Afterwards, officials signed the MoA and exchanged them. The wind power projects in Rakhine will generate 360 MW and bring benefits to the region.

Source: The Global New Light of Myanmar

Union Minister for Electric Power U Thaung Han mentioned that solar energy will be used in the newly built electric vehicle (EV) charging stations. It is reported that charging stations for electric vehicles will be built and the power required for the stations will be mainly used from solar energy. The Union minister said that the power that will be released in the current period will be connected to the National Grid and transmitted according to the Standard Operation Procedure (SOP) established by MOEE.

EV chargers 60 kW (10 sets) and 200 kW (two sets) to be used in BEV charging stations under implementation by the Steering Committee on National-level Development of Electric Vehicles and Related Industries, arrived in February. EV chargers will be installed at the No 3 Tollgate of the Yangon-Mandalay Expressway, Pyu bus station, Nay Pyi Taw junction bus station, and the Thabyaygon Market in Zabuthiri Township of Nay Pyi Taw.

Permission was granted to place seven EV charging stations each on the Yangon-Mandalay Expressway and in Nay Pyi Taw. Fifty-one chargers will be installed in 38 EV charging stations, it is learnt. Forty BYD E2 model electric vehicles have been imported into the country to date. The test run will be carried out with 20 EV cabs at the Yangon International Airport and the Nay Pyi Taw Thabyaygon Market.

Source: The Global New Light of Myanmar

The domestic fuel market sees a small change in prices yet it stays on an upward trajectory. This month, the market sees a price swing every day. On 17 February, the prices touched a high of K2,185 per litre of Octane 92, K2,260 for Octane 95, K2,240 for diesel and K2,320 for premium diesel. The domestic fuel prices are set depending on the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.

Last August 2022, the oil prices peaked at K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,330 for premium diesel and K3,245 for diesel. The committee is therefore governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and to ensure price stability for energy consumers. The Petroleum Products Supervision and Inspection Department, under the guidance of the committee, is issuing the daily reference rate for oil to offer a reasonable price to energy consumers.

The reference rate in Yangon Region is set on the MOPS’s price assessment, shipping cost, premium insurance, tax, other general cost and health profit per cent. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily covered 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. As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices.

The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those 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

On 8 February 2023, the retail reference price of diesel fuel was only K20 per litre higher than that of octane 92, according to the reference prices. The retail reference prices per litre of fuel on 8 February were only K2,155 for octane 92, K2,220 for octane 95, K2,175 for diesel and K2,255 for premium diesel. On 7 February 2023, octane 92 and diesel were traded at K2,075 and K2,185 per litre respectively. The gap between octane 92 and diesel in the retail reference price per litre was K110 on 7 February and declined to K20 on 8 February. In the fuel oil market, diesel prices tend to be higher than gasoline prices. Thus, the rental for diesel vehicles is higher than that for gasoline vehicles.

As most freight vehicles consume diesel rather than petrol, it is more convenient in transportation when the diesel price is only slightly higher than the petrol price, Ko Aung Zaw, a truck owner, told the GNLM.
Authorities make an announcement of fuel and edible oil reference prices based on foreign prices. The fuel oil price is announced daily and the price of edible oil is notified once a week. On 6 February, a barrel of octane 92 and diesel was priced at US$92.18 and US$105.71 respectively in the foreign market. The prices changed to $96.64 and $105.23 respectively on 7 February, according to the daily foreign fuel prices. In the foreign fuel market, the price of gasoline is rising and that of diesel is falling, Ko Aung Zaw added.

Starting from May 2015, the weekly prices of gasoline were announced in the State-owned newspapers, and it is known that diesel was cheaper than gasoline in those years. A barrel of diesel (50 gallons) in Yangon skyrocketed to around K300,000 in 2008. On 21 February 2009, the price dropped to K79,000. If we observe the domestic fuel price changes over the past decade and this year’s price changes, it can be seen that only diesel is mainly used in cargo transportation. This year, diesel is more expensive than petrol. However, due to the situation these days, the price difference has become less, and the number of truck operators is increasing. Compared with the end of August 2022, it is known that the price of diesel in this month has become cheaper by K1,000 per litre, around K5,000 per gallon and over K200,000 per 50-gallon barrel.

Source: The Global New Light of Myanmar

On 20 January 2023, the prices of fuel oil were K2,200 per litre for Octane 92, K2,275 for Octane 95, K2,420 for diesel and K2,500 for premium diesel. On 21 January, the prices declined to K2,305 per litre for Octane 92, K2,385 for Octane 95, K2,480 for diesel and K2,560 for premium diesel. The figures indicated an increase of K60-105 per litre depending on the types of oil within one day. The domestic fuel prices vary following the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil.

Consequently, the prices touched a high of K2,605 per litre for Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel in late April. The committee is steering the oil sector effectively to ensure adequate supply in the domestic market and price stability for energy consumers. The committee is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate is set on the MOPS’s price assessment, shipping cost, profit margin, premium insurance, tax and other general costs.

The rates for regions and states other than Yangon are evaluated after adding the transportation cost 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 on a daily basis starting from 4 May. The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate.

As per the statement, 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those 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 levies 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  

Union Minister of Electric Power U Thaung Han, during his inspection tour of the Kanyin reservoir in Ingapu township of Ayeyawady region on 23 December, said that, according to the pre-feasibility studies, 29.9 megawatts of electricity can be produced from hydropower and solar energy from the reservoir.

In addition, the Union minister underscored that the technological needs will be fulfilled with the arrangements of the regional government as soon as possible.

The wind energy project is being implemented in Ayeyawady Region and it should be launched as soon as possible for the socioeconomic development of the region, Union Minister U Thaung Han added. The Kanyin Dam Project was built in the 2002-2003 financial year and was completed in the 2011-2012FY, and the irrigation system was started in the 2017-2018FY.

Source: The Global New Light of Myanmar