Posts in category: ENERGY

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

Fuel prices continued to spike in recent days and it is stable on the high side, according to the fuel price market. Fuel prices started to spiral on 8 August 2022. Between 13 and 15 August, the prices remained unchanged on the high side. The prevailing fuel prices stood at K2,320 per litre for Octane 92, K2,390 for Octane 95, K2,730 for premium diesel and K2,655 for diesel. The upward spiral of the fuel prices is attributed to the continuous depreciation of the Kyat against the US dollar. Despite the Central Bank of Myanmar’s reference exchange rate of K2,100, a dollar is valued at K2,900 in the grey market.

The Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil stated that surging fuel price is following an increase in the price index set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia. 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. Some fuel stations in regions and states are facing short supply and the fuel price skyrocketed.

The Petroleum Products Regulatory 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 cost, premium insurance, tax, other general cost and health profit per cent. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the 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

In the first week of August, the price of 92 fuel was around K1,600 per litre, and on 11 August, it rose to K2,140, which increased by more than K540 in four days, according to the reference prices of the Fuel Import, Storage and Distribution Supervisory Committee. After the shortage of some types of fuel in the market on 7 August, the prices of (premium) diesel and Octane 92 Ron skyrocketed when the market opened yesterday. In the Yangon fuel market, 92 Ron per litre was only K1,615 on 7 August, and it reached K2,140 on 11 August.

According to the reference price of the Fuel Import Storage Distribution Supervisory Committee, 92 Ron is reaching K2,180 to K2,720 per litre in Yangon, Mandalay, Nay Pyi Taw, Bago, Magway, Dawei, Monywa, Pathein, Hpa-An, Mawlamyine, Myitkyina, Sittway, Lashio, Taunggyi, Loikaw, and Kengtung. According to the reference price of fuel published yesterday by the Fuel Import, Storage and Distribution Supervisory Committee, the retail price of 92 Ron per litre in the Yangon Region is K2,140, and 95 Ron is K2,210 per litre, while one litre of HSD (500 ppm) was set at K2,440.

Similarly, HSD (50 ppm) and HSD (10 ppm) were set as K2,515 per litre as reference retail prices for motor oil. In addition, the Fuel Import Storage Distribution Supervisory Committee’s reference wholesale price of motor fuel in the Yangon region is K2,038 per litre of 92 Ron, K2,108 for 95 Ron, K2,331 for HSD (500 ppm) and K2,440 for HSD (10 ppm). Fuel shortages are occurring in cities of Shan, Mon, and Kachin states. There have been delays in extracting oil even in Yangon where fuel oil storage tanks are located. Currently, fuel prices are calculated based on the MOPS price by the Fuel Import, Storage and Distribution Supervisory Committee, and if consumers are not satisfied, they can report to the committee. 

Source: The Global New Light of Myanmar

The prices of domestic fuel prices increased by about K150 per litre of Octane 92 and Octane 95 within two days, according to the Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil. As per the retail reference rate issued by the Committee on a daily basis, oil prices stood at K1,665 per litre for Octane 92, K1,715 for Octane 95, K2,110 for premium diesel and K2,050 for diesel on 25 July. The prices jumped to K1,810 for Octane 92, K1,860 for Octane 95, K2,135 for premium diesel and K2,080 for diesel.

The price hike is followed by the price set by Mean of Platts Singapore (MOPS), the pricing basis for many refined products in southeast Asia. Singapore MOPS price has risen for now. 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. Additionally, the Petroleum Products Regulatory 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 cost, premium insurance, tax, other general cost and health profit per cent. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the 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 compared to 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

According to the fuel market, the price of domestic fuel has fallen again and reached K1,700 per litre for Octane 92. Last 22 June, the petrol price in the Yangon market was K2,275 for Octane 92, K2,375 for Octane 95 and K2,720 for premium diesel. The price of diesel reached K2,690 per litre. On 16 July, the price of fuel oil in the Yangon market is K1,700 for Octane 92, K1745 for Octane 95, K2,190 for premium diesel, and K2,130 for one litre of diesel. Therefore, within 24 days, according to the type of fuel, per litre has decreased by from K530 to K630. The decline in fuel prices is due to the decline in Singapore-based Mean of Platts Singapore (MOPS) prices.

It is reported that the current Motor Fuel Import, Storage and Distribution Supervisory Committee is working to ensure that there is no shortage of motor fuel in the market and to stabilize prices. In addition, in order to ensure that the fuel prices in the market are balanced, the Petroleum Products Supervision and Inspection Department publishes daily fuel reference prices under the supervision of the Fuel Import, Storage and Distribution Supervision Committee. The reference prices are based on Singapore’s daily MOPS price. It is based on the reference wholesale price in Yangon, taking into account operating costs and reasonable profit percentages, premium insurance fees plus taxes.

After adding reasonable average transport costs to the reference wholesale price, officials have calculated the reference retail prices that should be according to the regional and state capitals. Reference retail prices are published via national newspapers, media and the department’s Facebook page and its website. Myanmar can meet only about 10 per cent of its domestic fuel demand, and the remaining 90 per cent has to be imported and used from abroad, so the price of fuel sold locally is changing depending on the international price.

It is reported that the price of domestic motor oil is distributed at a reasonable price compared to the regional countries, and officials are working to ensure that there is no mutual harm between the sellers and the users to have reasonable prices. In some countries, due to taxes on the import of motor fuel, the price is higher than in Myanmar. In Malaysia, the government provides additional payments as subsidies so the price is about 60 per cent cheaper than in Myanmar. Every country set fuel prices according to its own country’s policy, but Myanmar collects only a small percentage of taxes and distributes the fuel to the public at a low price, officials said.

Source: The Global New Light of Myanmar

The prices of fuel oil have fallen back slightly in the domestic market following the dip in global oil prices.
On 22 June, the prices stood at K2,275 for Octane 92, K2,375 for Octane 95, K2,690 for diesel and K2,720 for premium diesel, whereas the prices declined to K2,135 for Octane 92, K2,225 for Octane 95, K2,410 for diesel and K2,435 for premium diesel on 1 July. There is a gap of K140-285 per litre within ten days, according to the local fuel oil market. A supervisory committee on oil import, storage and distribution of fuel oil is governing the fuel oil storage and distribution sector effectively and ensures price stability for energy consumers.

Additionally, the 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 cost, premium insurance, tax, other general cost and health profit per cent. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the reference rates daily covered 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 compared to 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. Moreover, the government set the official exchange rate at K1,850 to stabilize the FX market, keep the balance between exports and imports and mitigate foreign currency risk.

For the oil sector, the committee is implementing to import the oil promptly depending on the actual requirement in the domestic market. The committee is also carrying out to generate revenue for the State, scrutinize import licences, submit a request to purchase foreign currency, monitor the oil storage and distribution activities, control quality and make traceability records for price manipulation, overcharging and identifying abnormal conditions in handling oil to take actions against those unscrupulous traders. People can file any complaints about services at petrol stations through contact numbers (067-409881, 067-411129, 09-699611116, 09-440433533). Upon the complaints, a surprise check, assessment, discussion and taking actions are conducted. The PPRD is also tackling the matters requested by the oil-importing companies, according to the statement. 

Source: The Global New Light of Myanmar

Fuel oil prices inched higher, around K2,000 per litre in the domestic market on the devaluation of Kyat against the US dollar and a sharp increase in crude oil prices, the market data in the Yangon Region showed. According to a market observer, the rumours spreading in the domestic market, setting a sales limit at the retail stations, and panicked consumers’ buying are other problems of price hikes. The prices soared to nearly K2,000 for Octane 92, K2,025 for Octane 95, K2,320 for diesel and K2,350 for premium diesel on 2 May 2022.  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.

According to the local fuel oil market, there is a large gap of K600-960 per litre within four months. The fuel oil price is highly correlated with the foreign exchange rate. The exchange rate is now pegged at around K2,000 at the unofficial exchanges. When a dollar was valued at 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 the domestic retail market. Additionally, domestic oil prices are positively related to the global market. Oil prices jumped in the worldwide market as the Russia-Ukraine crisis escalated, with US$104.2 per barrel for WTI crude and $106.5 for Brent crude at present.

Additionally, the Central Bank of Myanmar has directly sold over $87 million to the fuel oil sector so far.
Myanmar has inventories of about 45 million gasoline and 70 million diesel. According to the Petroleum Products Regulatory Department under the Ministry of Electricity and Energy, there is no need to worry about a shortage of fuel oil. Myanmar imports oil from Singapore, Malaysia and the Republic of Korea. The rumour raised the concerns of the consumers and resulted in panic buying. Consequently, the Petroleum Products Regulatory Department stated that the retail stations were out of hand. Usually, Myanmar yearly imports six million tonnes of fuel oil from external market, the Ministry of Commerce stated. 

Source: The Global New Light of Myanmar

Thailand’s PTTEP Oil and Gas and Malaysia’s Petronas announced on April 29 that they would withdraw from Myanmar’s Yedagun gas project. International energy companies, including Chevron and Total Energies, have left Burma en masse after a military coup in Burma last year. Carigali, a subsidiary of Petronas, has a 41 per cent stake in the Yedagun project, with PTTEP holding a 19.31 percent stake.

“The resignation is part of the company’s investment management plan, which will focus on projects that support the country’s energy security,” PTTEP chief executive Montrey Wanchaiku said in a statement on April 29.  Located in the Gulf of Martaban, the 24,130-square-kilometer project produces natural gas and liquefied natural gas.

As a result, only Nippon Oil and Gas Exploration Company of Japan and the Myanmar Oil and Gas Company, which is affiliated with the Burmese Army, remain in the project.

Source: Daily Eleven

The $ 2.5 billion Irrawaddy Region Mee Lin Chaing project, which will include an LNG power plant and a gas pipeline to Rangoon, will be included in the list of early projects on the China-Myanmar Economic Corridor, according to the statement. Three Chinese companies: Union Resources and Engineering Company (41%); Yunnan Energy Investment (39%) and Zhefu Holding Group (1%) have partnered with Myanmar’s Supreme Group (19%) to launch a 1,390-megawatt LNG project.

The plant in Ayeyarwady Region includes an LNG power plant; LNG storage; These include high voltage transmission lines and gas pipelines to Yangon. The project has been approved by the Myanmar Investment Commission and is expected to be commercially operational by 2027. In addition, the Myanmar government will propose to include the priority energy project, which has an estimated investment of $ 2.5 billion, to accelerate its growth, as part of the Sino-Burmese Economic Corridor’s initial plans.

CNPC’s China-Myanmar oil and gas pipeline project is CNPC’s largest investment in Myanmar and a key focus of the Silk Road project. Acceleration of some gas-fired power plants (gas-fired) and other gas-fired power plants or waste-to-energy projects for immediate 30 megawatts of electricity; At present, Kyaukphyu generates about 100 megawatts of electricity using 20 million cubic feet of natural gas. 

Once the pipeline is maintained, it will expand to 30 million cubic feet per day and generate 195 megawatts. Despite sanctions, Myanmar is simultaneously working on repairing damaged power lines and developing hydropower and renewable energy as it seeks to increase foreign investment. Recent media coverage of energy shortages in Myanmar; Union Minister for Information Maung Maung Ohn and Union Minister for Investment and Foreign Trade Aung Naing Oo issued a joint statement in response to recent media reports on the departure of foreign energy companies and sanctions on Myanmar.

Source: Daily Eleven