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