Octane surpasses diesel in prices

The fuel prices dip in the domestic market tracking the slump in world oil prices. The octane exceeded diesel significantly in price. The prices moved slightly down to K2,037 per litre of Octane 92, K2,128 for Octane 95, K2,007 for diesel and K2,081 for premium diesel on 29 March. The price stood at K2,145 for Octane 92, K2,240 for Octane 95, K2,110 for diesel and K2,190 for premium diesel on 28 March. Diesel is commonly used in generators and agricultural machines.

Consequently, demand is higher than before. As a result of this, there is difficulty in purchasing in the industrial sector. Therefore, some hike up rent for agricultural machines for unreasonable assumptions despite the decrease in diesel price. The diesel price hit a high of K3,245 per litre in August 2022. This month, diesel price hovers at approximately K2,000 per litre.

The price difference between diesel and Octane has narrowed. Earlier, diesel surpassed Octane in price. Some businesses consume diesel as commercial power supplies were restricted to a certain extent in March. Yet, they can save some costs amid the diesel price decline. I anticipate the diesel price to stay low like this for a long time, Ko Htaw, a truck owner told the Global New Light of Myanmar. 

Source: The Global New Light of Myanmar

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Myanmar registers trade deficit of over $754 mln over past 11 and half months

Myanmar’s trade gap widened to over US$754 million between 1 April and 17 March of the current financial year 2022-2023 compared to the year-ago period. Higher exports and lower imports resulted in a trade surplus of $524 million in the corresponding period of the 2021-2022 FY, according to data provided by the Ministry of Commerce. While exports were estimated at $15.95 billion, imports were valued relatively low at $16.7 billion over the past 11 and half months. Compared to the FY 2021-2022, exports showed an increase of over $1.368 billion, while import value was up by $2.647 billion. 

Myanmar aimed to achieve an export target of $15.5 billion and an import target of $14 billion for the 2022-2023 FY, totalling U$29.5 billion, according to the 2022-2023 Financial Year Budget. Myanmar’s external trade this year amounted to $32.659 billion as of 17 March this FY, which soared from $28.642 billion. The figures indicated a sharp rise of over $4 billion compared to the year-ago period. Myanmar’s maritime trade value edged up to $24.48 billion this FY from $21.359 billion recorded in the same period last year.

Similarly, the country witnessed an increase of $894.75 million in border trade as the cross-border posts with the main trade partner China was reopened. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic materials and supporting products for export promotion and import substitution. 

Source: The Global New Light of Myanmar

New summer paddy price climbs to K1.6 mln per 100 baskets

The prices of some new summer paddy moved up to K1.6 million and above per 100 baskets in some delta regions on 28 March. The prices stood at K1.6 million per 100 baskets of Thuka summer paddy, K1.65 million for summer paddy and Pakan paddy, K1.55 for paddy grown under the intercropping system, K1.56 for Nanka variety, K1.7 for Ayeya Padaytha, K1.93 for Pawsan and K1.68 million for Thuka monsoon paddy, according to a rice mill in Wakema Township.

Following the rise in paddy prices, the prices of rice also increased to K55,000 per bag of summer rice grown under the intercropping system, K58,000-67,000 for 90-day short matured rice, and K73,000-90,000 for Pawsan varieties. The summer paddy will be abundantly harvested in delta regions until end-April. The summer paddy grown under irrigation systems in Mandalay and Sagaing regions will be harvested during the July-August period. New monsoon paddy in delta regions will be yielded in September.

News about high prices of rice on low supply of paddy is circulating in the market. Paddy is constantly harvested every month. Some investors are storing commodities for great profit. The 2022 monsoon paddy and 2023 summer paddy growers are receiving a handsome income. There are approximately 1.7 million acres of monsoon and summer paddy in the country. The 2022 monsoon paddy and 2023 summer paddy seasons did not see the damage caused by natural disasters. The consumers are calling for authorities concerned to govern the market to avoid an unnecessary price hike for rice varieties that are mainly consumed locally. 

Source: The Global New Light of Myanmar

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Palm oil market sees steep plunge in price before Thingyan holidays

The prices of palm oil have fallen unexpectedly during the two weeks before the Thingyan holidays (Myanmar New Year Festival), said edible oil sellers. The delivery order prices were K6,400-6,500 per viss on 27 March in the Yangon market, decreasing from K6,600-6,700 per viss recorded on 24 March. The majority of the sellers purchased palm oil at above K7,000 per viss. They are making losses due to the decrease in market price. Before the Thingyan holidays, approximately 20,000-30,000 tonnes of palm oil are expected to be brought into the country.

Demand outstrips supply. There were only 10 days remaining to sell them to customers from regions outside Yangon. Malaysian palm oil price is around 3,504 ringgit per tonne. The international oil price was still low at US$930 per tonne on 24 March. The price decline is attributed to the large volume of supply although the holidays are approaching. However, the DO price is still K2,000 higher than the wholesale reference price for Yangon.

The mobile market scheme has been carried out in the respective townships over months. The sellers stored the stocks at a high price yet the price moved down. The traders who send the oil to regions outside Yangon pointed out that it is hard to guess the price fluctuation in the domestic market. In the last week of December 2022, the price difference between the reference price and the market price was only K800 per viss. In early March, the difference widened to K2,000 per viss. Some vendors still generate profit from it. 

Source: The Global New Light of Myanmar

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Date: 8th April, 2023

Time: 1:00-4:00 pm (Local Time)

Venue: Royal Hall (Mandalay Paradise Food Corner)

Online LIVE section on EV Myanmar Group Facebook page

Organizer: EV Myanmar Group

Details: There will be discussion sections about the facts that local entrepreneurs, car lovers, and motorcycle lovers should prepare for at the beginning of Myanmar EV journey in 2023, and the questions asked by the participants of the event will also be answered.

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Seeking import licences before port arrival of goods mandatory

Seeking import licence for all types of goods including ones stored under customs warehousing before the goods arrive at the port is obligatory, according to the notification released by the Trade Department under the Ministry of Commerce. The department apprised the importers of the rules and regulations for imports that need import licences as per the Export/Import Notification 7/2023 dated 22 March.

Earlier, the Trade Department under the Ministry of Commerce released Notification 50/2020 stating that all import items except goods stored in the Customs warehouse that need import licences were not allowed to arrive at the port before the port arrival processing permit to comply with the customs regulation stipulated in Notification 68/2019 of the Ministry Planning and Finance.

Additionally, importers were notified to face legal actions in line with the Export and Import Law if early arrival of the goods without import licence or permit of the departments concerned was found, as per export/import news letter 6/2022. Therefore, an import licence is required for all items including goods to be stored at the Customs warehouse before arrival, intending to steer trading activities and maintain the quality of the goods due to failure to claim the goods from the Customs bonded warehouse for a long period. Thus, the statements in Notification 50/2020 will cease to be in effect for six months from 1 April 2023 and suspension might extend, if necessary, the Trade Department notified.

Source: The Global New Light of Myanmar

CBM to govern export earnings to be deposited into local bank accounts

The Central Bank of Myanmar (CBM) will steer private sectors to ensure that the foreign currency earned from exports will be deposited in the local bank accounts, the CBM’s governor Daw Than Than Swe said. On 20 March, the governor made that remark at a meeting held in Nay Pyi Taw with the companies that fail to deposit export earnings.

According to Sections 18 (A) and 38 (B) of the Foreign Exchange Management Law and directive 27/2021, exporters to Asian countries must deposit their export income within 45 days from the starting day. Those shipping goods to countries outside Asia must deposit income within 90 days.

The Central Committee on Ensuring Smooth Flow of Trade and Goods, the Ministry of Commerce, the Bureau of Special Investigation and the Working Group on facilitation of Trade and Goods are monitoring whether there is actual export income into the local bank account or not. Export earnings are one of the main foreign capital inflows. It also plays a pivotal role in stabilizing the forex market. Strong compliance of the export companies to the Foreign Exchange Management Law, rules and regulations will facilitate money flows. 

Source: The Global New Light of Myanmar

Diesel price tumbles near to seven-month low in late March

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

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Palm oil wholesale reference price for Yangon Region dips

The wholesale reference rate of palm oil for the Yangon market slid again this week ending 27 March compared to that of the previous week, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,635 per viss in the week from 13 to 19 March. For the week ending 27 March, the price was set slightly lower at K4,570 per viss, showing a small decrease of K65 per viss this week.

The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil every week.
Regardless of the reference price, the current market price is too high at over K6,000-7,000 per viss.

If those edible oil retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Essential Supplies and Service Act, MoC released a statement. The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to the consumers and maintain price stability.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They offer palm oil at a fairer price to the consumers directly depending on the reference price. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. 

Source: The Global New Light of Myanmar

Gold spot price elevates YGEA reference price to over K2.34 mln per tical

Yangon Region Gold Entrepreneurs Association hikes reference rate to over K2.34 mln per tical (0.578 ounce or 0.016 kilogramme) with the gold spot prices rising. On 1 March, gold spot prices hit US$1,833 per ounce and YGEA’s price was K2,159,500 per tical. As the gold spot price rallied to $1,989 per ounce in the international market, the reference price of the YGEA jumped to K2,343,300 per tical on 18 March. The figures indicated an increase of $156 per ounce and over 180,000 per tical within three weeks. Despite the YGEA’s reference price, pure gold climbed to K2,980,000 per tical in the unofficial market, showing a large gap of over K630,000 per tical with the reference price.

YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,870 in the unofficial forex market. The gold spot prices and dollar exchange rates influence the domestic gold price. The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.

With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.mUnder the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.

The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. 

Source: The Global New Light of Myanmar