Posts in category: ENERGY

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

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

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

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

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

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

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

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

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

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