Posts in category: ENERGY

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

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

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

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

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

Due to the rising price of diesel, electricity will be charged at 800 kyats per unit in Ye Township from this month, according to Myat Thura, a private electricity supplier to Ye Township and surrounding villages. For the current October, the electricity meter price will be changed to 800 kyats per unit. The increase in meter prices has made the people who use electricity more burdened. According to the current diesel price, the price per meter is not fixed. An official from Myat Thura Company, said that the price of a liter of diesel used to be 220,000 kyats, but now it is 305,000 kyats per liter.

If there is an increase in the meter price, they have to negotiate with the relevant authorities. This is a time when the public is in a tight spot, which can be a problem for consumers. If diesel prices fall again, the meter price will be reduced. They simply want the government to provide electricity as soon as possible. The people in Ye Township will be comfortable if the government gets electricity soon, according to an official from Myat Thura Company. During COVID-19 last year, the minimum price was 350 kyats per meter, coordinated by the previous state government. 

Later, it was increased to 500 kyats per unit, and for last August, the electricity meter price was 600 kyats per unit, according to locals. Right now, the price of electricity has gone up a lot. Those who work with electricity are in even more trouble. There is no clue whether their company can match the current price of diesel or not. For this reason, some villages being lit only at night. It is learned that Myat Thura Company has to use more than 60 barrels of diesel to provide electricity for 36 hours. At present, the price of a barrel of diesel is over 300,000 kyats, so the company may have a problem, said a Ye resident. Electricity will cost as much as you use. Businesses that use electricity will also have to go up in price. At this time, ordinary people can spend more.

Source: Daily Eleven

Myanmar’s exports of natural gas are estimated at US$2.194 billion in the past ten months (October-July) of the current financial year 2020-2021, the Commerce Ministry’s data showed. Natural gas is included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. There are 53 onshore blocks and 51 offshore blocks, totaling 104 blocks.

A total of 25 onshore blocks and 31 offshore blocks are being operated under foreign investment. Natural gas extraction is being made at the Yadana, the Yedagun, the Shwe, and the Zawtika offshore blocks as well as onshore drilling blocks, according to the statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore from Rakhine State, was discovered in 2014. Natural gas extracted from the field is exported to China.

The Yadana natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagun, located offshore from Taninthayi Region and discovered in 1992. The Zawtika Project in the Gulf of Mottama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagun is declining, and those projects will be halted in the coming years. Myanmar’s exports of natural gas stood at $3.5 billion in the 2019-2020FY, $3.9 billion in the 2018-2019FY, $3.5 billion in the 2017-2018FY, $3.116 billion in the 2016-2017FY, and $3.445 billion in the 2015-2016FY, as per Commerce Ministry data.

Source: The Global New Light of Myanmar

The domestic fuel oil price in the last week of September tremendously increased to double compared with the price recorded in the past eight months, Myanmar Petroleum Trade Association’s price data showed. The coronavirus impacts and the remarkable global rally led to the price rises, coupled with the devaluation of Kyat in the forex market. 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 domestic retail market. Then, it remarkably climbed up to K1,235 for Octane 92, K1,275 for Octane 95, K1,230 for diesel and K1,249 for premium diesel on 26 September 2021, according to local fuel oil market.

Domestic oil price is positively related to global market. Oil price inched higher in the global market at US$73.98 per barrel for WTI crude and $78.09 for Brent crude on 26 September. Additionally, foreign exchange rate also affects thepetroleum price. The Kyat continues to weaken in the local forex market in September, rising above K2,100 per dollar. In mid-February, a dollar was worth K1,430 only. Myanmar imported nearly $2.3 billion worth fuel oil in the past ten months (Oct-July) of the current financial year 2020- 2021, according to the Ministry of Commerce. Normally, a monthly oil import is estimated at $400 million, yet the oil importers are facing banking restrictions for maritime trade besides Kyat depreciation. Oil importers via land border can use informal payment Hundi system instead, said an importer.

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. Last year, the domestic oil prices have declined starting 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

Myanmar’s exports of natural gas are estimated at US$2.175 billion in the past nine months (October-June) of the current financial year 2020-2021, the Commerce Ministry’s data showed. The figures indicated a sharp drop of over $1 billion compared to the year-ago period. Natural gas is included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. There are 53 onshore blocks and 51 offshore blocks, totaling 104 blocks.

A total of 25 onshore blocks and 31 offshore blocks are being operated under foreign investment. Natural gas extraction is being made at the Yadana, the Yedagun, the Shwe, and the Zawtika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion last year, according to the statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore Rakhine State, was discovered in 2014. Natural gas extracted from the field is exported to China.

The Yadana natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagun, located offshore Taninthayi Region and discovered in 1992. The Zawtika Project in the Gulf of Mottama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagun is declining, and those projects will be halted in the coming years. Myanmar’s exports of natural gas stood at $3.5 billion in the 2019-2020FY, $3.9 billion in the 2018-2019FY, $3.5 billion in the 2017-2018FY, $3.116 billion in the 2016-2017FY, and $3.445 billion in the 2015-2016FY, as per Commerce Ministry data.

Source: The Global New Light of Myanmar

Over the past seven months, local petrol prices have risen by 70 to 80 per cent, depending on the type, and to 1,160 kyat per 95 octon per liter, according to local petrol stations. On September 9, domestic prices of octane 95 Ron were 1,160 kyats per liter; Octane 92 Ron 1140 kyats per liter; 1115 kyats for a liter of diesel; Premium diesel costs 1,110 kyats per liter, according to local petrol stations. On February 2, the local price of petrol was 750 kyats per liter and 750 kyats per liter. Octane 92Ron 625 kyats per liter; Premium diesel 670 kyats per liter.

Diesel costs only 660 kyats per liter, according to figures released by the Myanmar Petroleum Importers and Distributors Association (MPTA). For more than seven months, octane 95Ron 410 kyats per liter; Octane 92Ron 515 kyats per liter; Premium diesel 445 kyats per liter; Diesel prices have risen to 450 kyats per liter. Octane 92 Ron about 80%; Premium diesel and diesel rose by about 70 percent per liter, respectively. Myanmar imports around six million tonnes of kerosene a year, according to the Ministry of Commerce.

In the first seven months of the current fiscal year, imports were just $ 1.2 billion from 2.7 million tonnes, down more than one million tonnes from the same period last year, according to an official from the Ministry of Commerce. In the first seven months of the current fiscal year, imports of kerosene fell by 1,002 million tonnes, down $ 663.347 million from a year earlier. During that period, 1.66 million tonnes of diesel was imported, valued at $ 721.173 million. It was down more than 650,000 tonnes, down more than $ 430 million from the same period last year. More than one million tonnes of oil was imported, valued at $ 536.113 million. It was down more than 350,000 tonnes from the same period last year, valued at $ 227.187 million.

Source: Daily Eleven