Posts in category: ENERGY

The tanker ships carrying more than six million gallons of fuel oil docked at the Terminals of Thilawa Port in the Yangon Region, according to the Ministry of Commerce. On 25 September, the MT Yu Yi ship unloaded 4.03 million gallons of diesel- 1.86 million gallons of diesel HSD and 2.17million gallons of premium diesel PHSD while the MT Harmony One vessel 2.13 million gallons of 92 Ron.

The Supervisory Committee on Import, Storage and Distribution of Fuel Oil drew up the Standard Operating Procedures (SOPs) on fuel import, storage and distribution and reported the fuel imports to the Foreign Exchange Supervisory Committee in September. It allowed 233,594.60 tonnes of fuel oil imports—80,499tonnes of petrol and 153,095.60tonnes of diesel.

According to the remaining amount of fuel oil at the Thilawa fuel storage tank, fuel stations and distribution rate, the country has enough stocks of fuel oil, according to the committee. The officials distribute the fuel oil to the fuel stations across the nation by oil browsers, tankers and trains in time. There are over 2,000 fuel stations and about 70 local oil import companies in Myanmar. Before the Ukraine-Russia conflict, the global crude oil price was $91 per barrel on 24 February and it reaches about $110 now.

When the global oil prices are increasing, the local prices are also on the rise, the oil trader said. According to the global crude oil market on 27 September, the market started at $84.05 and the market price was $84.46 in trading. The price was higher by $0.40 compared to the prices on 26 September. The global crude oil price plunges to the lowest level since January and it is stable and high again due to the rising dollar exchange rate and control of the Central Bank of the United States, market analysts said. 

Source: The Global New Light of Myanmar

More than 230,000 tonnes of fuel oil were allowed to be imported in September 2022, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. The committee draws up Standard Operating Procedures (SOPs) on fuel import, storage and distribution and reports fuel import matters to the Foreign Exchange Supervisory Committee. This month, fuel importers have an import quota of 233,594.60 tonnes, with 80,499 tonnes of gasoline and 153,095.60 tonnes of diesel. That is why fuel oil is sufficient in the domestic market.

Oil tankers are unloading fuel oil at terminals of Thilawa Port; with 51.17 million gallons of diesel and 60.37 million gallons of premium diesel unloaded by MT Yu Dong ship and 42.33 million gallons of Octane 92 and 92.25 million gallons of diesel by MT Yu Hai. 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’ price assessment, shipping cost, profit margin, premium insurance and other general costs. On 23 September, the prices stood at K2,240 per litre for Octane 92, K2,320 for Octane 95, K2,730 for diesel and K2,815 for premium diesel.

However, the market prices are way higher than the reference rates. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law if they are found overcharging. Additionally, the committee in cooperation with Myanmar Petroleum Trade Association has been distributing fuel oil efficiently to ensure energy sufficiency in each township of the regions and states. However, armed groups’ attacks on fuel oil browsers and barges caused delays in supply to the fuel stations at some townships, according to a statement.

Therefore, to fulfil the energy requirements in some regions and states, the committee is supervising fuel oil import via cross-border areas under the approval of the related state government. Last April, some petrol stations allegedly suspended fuel sales and set limited sales, sparking consumers’ concerns and raising fuel prices. The committee was formed to steer the oil sector effectively not to have a shortage of oil in the domestic market and ensure price stability and quality for energy consumers. Ninety 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 in 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

Fuel prices fell by over K200 per litre after the Central Bank of Myanmar (CBM) declared to provide more than 200 million US dollars for the fuel oil sector, according to the market report. On 31 August, fuel prices stood at K2,605 per lire of Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel. On 1 September, the fuel prices slipped to K2,375 per litre of Octane 92, K2,440 for Octane 95, K3,140 for diesel and K3,225 for premium diesel. The figures showed a decrease of K230 per litre of Octane 92 and Octane 95 and K105 per litre of diesel and premium diesel respectively.

The CBM declared on 31 August that it will provide more than US$200 million through the foreign exchange market according to the decision made by Foreign Exchange Supervisory Committee in order to ease the commodity inflation triggered by fuel price hike. The fuel prices descend accordingly. After the exchange rate against the US dollar hit over K4,000, fuel prices skyrocketed in recent days. In early August, fuel prices stayed upward on the dollar price. As a result of this, some fuel stations in regions and states allegedly faced a shortage of supply. Nonetheless, some petrol stations were allegedly suspending fuel sales and setting limited sales on the possible shortage of fuel oil, sparking consumers’ concerns and raising fuel prices.

They seemed to take advantage of the consumers’ concerns for their benefits, according to the statement released by the Central Committee on Ensuring Smooth Flow of Trade and Goods on 16 August. The committee has assured adequate fuel supply until this month. It is also working together with Myanmar Petroleum Trade Association to ensure a steady fuel supply in order for the energy consumers to mitigate concerns, the statement mentioned. Therefore, the consumers can complain about the halt in fuel sales and limited sales through the contact numbers of the respective regions and states if they find those stations that violate the rules, the committee stated. The committee is governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers.

The Petroleum Products Inspection and Supervision 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’ price assessment, shipping costs, premium insurances, taxes, other general costs and profit per cent of Singapore. The rates for regions and states other than Yangon are evaluated after adding the transport costs and 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.

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

The fuel prices are spiking and indicating a sharp increase of K750-1,100 per litre within one month, according to the fuel market. On 1 August 2022, the fuel prices in the Yangon market stood at K1,820 per litre for Octane 92, K1,890 for Octane 95, K2,195 for premium diesel and K2,135 for diesel. The prices jumped to K2,570 for Octane 92, K2,635 for Octane 95, K3,335 for premium diesel and K3,255 for diesel on 30 August, showing a rise of K745-750 per litre of Octane 92 and 95 and K1,120-1,140 per litre of diesel and premium diesel respectively. Fuel price spike made it difficult to create a better living, a taxi driver told the Global New Light of Myanmar (GNLM).

“Taxi fare was only K3,000 for a distance between downtown and Kyauktaing in Thakayta Township. Now, the rate has doubled. So, I have to take a bus,” said a company staff member. The Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated that domestic fuel prices is following the price index set by the Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia. The Central Bank of Myanmar raised the reference exchange rate for a dollar from K1,850 to K2,100, whereas the exchange rate against the US dollar hit over K3,500 in the grey market. Since early August, the fuel prices have gradually increased tracking the soaring safe-haven dollar value against the Kyat.

Consequently, some fuel stations in regions and states allegedly faced a shortage of supply. Nonetheless, some petrol stations are allegedly suspending fuel sales and setting limited sales on the possible shortage of fuel oil, sparking consumers’ concerns and raising fuel prices. They are taking advantage of the consumers’ concerns for their benefits, according to the statement released by the Central Committee on Ensuring Smooth Flow of Trade and Goods on 16 August. The committee has assured adequate fuel supply until this month. It is also working together with Myanmar Petroleum Trade Association to ensure a steady fuel supply in order for the energy consumers to mitigate concerns, the statement mentioned.

Therefore, the consumers can complain about halts in fuel sales and limited sales through the contact numbers of respective regions and states if they find those stations that violate the rules, the committee stated. The committee is governing the fuel oil storage and distribution sector effectively not to have a shortage of oil in the domestic market and ensuring price stability for energy consumers. The Petroleum Products Inspection and Supervision 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’ price assessment, shipping costs, premium insurance, taxes, other general costs and profit per cent.

The rates for regions and states other than Yangon are evaluated after adding the transport costs and retail reference rates daily cover on the state-run newspapers and are posted on the social media and official website and Facebook page of the department on a daily basis 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 in 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 25 August 2022, the retail price of fuel stood at K2,490 per litre of Octane 92, K2,570 for Octane 95 and K3,055 for diesel. The prices soared from K1,615 per litre of Octane 92 and K1,970 per litre of diesel recorded on 7 August. The figures showed an increase of K875 per litre and K3,972 per litre of Octane 92.
A taxi uses three gallons per day. The drivers face an additional cost of K12,000 per day, Ko Oo, a taxi driver from North Okkalapa Township told the Global New Light of Myanmar (GNLM).

Taxi drivers are struggling with the soaring fuel prices. They have to pay the bill to the owners to keep the taxi. When the price is up by K875 per litre in 20 days, their daily income declines by around K10,000, he added. It is hard for the taxi driver to raise the fare for the passengers as some of the drivers use gas. Meanwhile, other Octane-fueled taxi drivers cannot push the price up, the GNLM quoted U Kyaw Win, a taxi driver from Hlaing Township, as saying.

Gas-fuelled taxi drivers have to pay K16,000 to the owners per day while Octane-fuelled taxi drivers have to pay only K8,000. Although the taxi drivers who use Octane can save K8,000, the fuel price hike causes an extra cost of K25,000 per day, U Kyaw Win, an Octane-fuelled taxi driver continued. Those who own the taxi need not worry about that bill and they can run the taxi to cover the fuel price. Therefore, the taxi service hour is quite lower than those of the taxi drivers who do not own the vehicles, said Ko Than Win, an owner of vehicles near Sanpya Cinema. The Octane taxi drivers are expecting the price not to spike again.

Source: The Global New Light of Myanmar

The export of natural gas from Myanmar to neighbouring countries such as China and Thailand earned over US$800 million during the four months of this 2022-2023 financial year, stated the Ministry of Commerce. From 1 April to 31 July, 77.89 million kilo of natural gas were exported through gas pipelines and earned $819.503 million.

Myanmar received $135 million in April, $194 million in May, $286.033 million in June and $204.47 million in July, respectively. Natural gas was exported mainly by the four offshore natural gas production projects which are Yadana, Yedagun, Shwe and Zawtika natural gas production projects. In April 2022, the country earned $289.9 million from natural gas exports and $229.2 million in April 2021. Comparing the same period in the previous year, the income from natural gas export exceeds $60.7 million.

During the six months of the 2021-2022 financial year from October to March (mini-budget period), more than $1,715 million were collected from natural gas exports, and the monthly export was the highest in November, according to the Ministry of Planning and Finance. In the mini-budget (from October to March) period of the 2021-2022 financial year, $280.2 million in October, $300.8 million in November, $274.2 million in December, $279.5 million in January, $290.2 million in February and $290.3 million in March, totalling $1,715.2 million were received by natural gas exports.

Source: The Global New Light of Myanmar

The local fuel oil prices became higher on 20 August and the 92 Ron was priced at K2,400 per litre in Yangon Region, according to the statement of the Supervisory Committee on Import, Storage and Distribution of Fuel Oil.

Similarly, it was over K2,400 per litre of 92 Ron in Mandalay, Nay Pyi Taw, Bago, Magway, Dawei, Monywa, Pathein, Hpa-An, Mawlamyine, Lashio, Taunggyi and Loikaw while it was over K2,500 in Myitkyina and Sittway, K2,700 in Haka and K2,900 in Kengtung, respectively.

According to the reference prices of the committee, retail prices of the fuel oil were K2,400 per litre of 92 Ron, K2,400 per litre of 95 Ron and K2,490 per litre of HSD (500 ppm) in Yangon yesterday. It was K2,895 per litre of HSD (50 ppm) and HSD (10 ppm).

Moreover, the wholesale prices were set at K2,292 per litre of 92 Ron, K2,376 per litre of 95 Ron, and K2,697 per litre of HSD (500 ppm) and K2,771 per litre of HSD (50 ppm) and HSD (10 ppm). The committee sets the prices based on the MOPS’ prices and the consumers can report to the committee if they are not satisfied with the operations.

Source: The Global New Light of Myanmar

The State Administration Council released Notification No 127/2022 saying the Steering Committee for Purchasing Fuel Oil from Russia was organized.

The committee will import the oil from Russia as per the State policies and economic policies depending on the country’s need, store and distribute the imported quality fuel at reasonable prices, and cooperate with the governmental departments and private organizations in purchasing, importing and transport processes.

It will also submit the needed foreign currency to the government monthly, supervise the arrival of fuel tankers in time and inspect the quality and quantity of oil together with the relevant organizations, it said.

Moreover, it will conduct necessary actions to distribute the fuel oil to Tatmadaw and ministries and supervise the import companies whether they follow the rules and regulations of the Supervisory Committee on Import, Storage and Distribution of Fuel Oil under the Ministry of Commerce.

It will also manage for further needs of the country in addition to fuel oil and petrochemicals produced in Russia in line with the directives of the State Administration Council, it added. Lt-Gen Nyo Saw will serve as Chairman of the 10-member steering committee.

Source: The Global New Light of Myanmar