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Myanmar Fuel

The Ministry of Energy is responsible for regulation of the fuel market. The state owned Myanma Oil and Gas Enterprise (MOGE) has the responsibility of quality testing and control of fuel and production of refined petroleum products. The state owned Myanma Petroleum Products Enterprise (MPPE) is responsible for retail and wholesale distribution of petroleum products. Myanmar has oil and gas fields but most reserves are in the form of natural gas, which is Myanmar’s most important source of export earnings.

MOGE is operating three refineries, but the capacity is insufficient to meet national demand of refined products. Since Oct-2009 the government allows the private sector to import petroleum products. The private sector imported more than 24,990 barrels per day in 2013 of diesel, gasoline and jet fuel, with Denko and Myawaddy Trading among the biggest local importers. Most diesel, gasoline and jet fuel is imported from Singapore and Malaysia, while some LPG is being imported from Thailand, especially along the border areas.

Source: Reuters (publisher) Factbos: Myanmar’s oil sector attracts investment, Date accessed: 28 Nov 2014.

260 fuel stations out of 273 operated by MPPE have been privatised on 10 June 2010. Fuel stations sell the following fuel types: diesel, premium diesel, Octane (92), Octane (95) and gasoline. Fuel stations are mostly privately owned, supplied by fuel importers and/or MPPE, or operated by a larger trading company. The most widespread fuel stations belong to: Max Energy, Htoo trading, Nilar Yoma, Myawaddy and KZH petrol station. The government is encouraging use of Compressed Natural Gas (CNG) in order to reduce reliance on imported petroleum products and reduce air pollution. As of 2013, 45 gas stations of which 39 in Yangon offered CNG, mostly used for buses, taxis and commercial vehicles in the industrial and transport sector.

Fuel Pricing

The price of gasoline and diesel has been liberalized in 2012: There is no government controlled pricing mechanism. Fuel prices change according to the international fuel market prices, such as the Singapore Platt's oil price. As of 1 March 2013, the state energy enterprise Myanmar Petroleum Products Enterprise (MPE) distributed gasoline to private fuel stations at a wholesale price of K 3,300 per gallon (K 726 per litre) . Private fuel stations may then sell gasoline to end users at retail prices, which may vary per fuel station. In addition, diesel prices are fixed at K 3,500 per gallon (K 770 per litre), and jet fuel at K 3,864 per gallon (K 850 per litre). It would appear that some forms of subsidy are given for oil, oil products, and natural gas.

Historically fuel has been sold per gallon unit (4.55 Litre), as per 2014 the government instructed fuel companies to sell per litre unit. Diesel, premium diesel and octane can be bought without restrictions, but for private car owners there is a 2 gallon per week limit for gasoline, through use of a smart card issued by MOGE. Most private car owners choose to use Octane (92) or (95) if they can afford the higher price.

Source: WTO (Publisher) Trade Policy Review Myanmar, WT/TPR/S/293, Jan 2014, http://www.wto.org/english/tratop_e/tpr_e/s293_e.pdf, Date accessed: 30 Nov 2014

Fuel Prices as of: 28 Nov 2014 (MMK)

Diesel (per litre)

940 MMK

0.91 Usd

Premium Diesel (per litre)

980 MMK

0.95 Usd

Gasoline (per litre)

820 MMK

0.80 Usd

Octane (92)

943 MMK

0.92 Usd

Octane (95)

1170 MMK

1.15 Usd

Paraffin (per litre)

NA

 

Jet A1 (per litre)

680 MMK

0.66 Usd

Source: Max Energy, http://www.maxenergymyanmar.com, Date: 28 Nov 2014,

Exchange rate 1 Usd: 1030 Kyat

Seasonal Variations 

The government and private company have enough capacity to supply the needs of market; there are no shortages of fuel. 

Seasonal Variations

Are there national priorities in the availability of fuel? (Yes / No)

No

Is there a rationing system? (Yes / No)

Yes

Is fuel to lower income/vulnerable groups subsidized? (Yes / No)

No

Can the local industry expand fuel supply to meet humanitarian needs? (Yes / No)

Yes

Is it possible for a humanitarian organization to contract directly a reputable supplier/distributor to provide its fuel needs? (Yes / No)

Yes

Fuel Transportation

Gasoline arrives by vessel in Thilawa port in Yangon and from there is distributed by tank trucks. Diesel is transferred from vessels to barges, which travel up-river to Mandalay, from where it is distributed by tank trucks. A petroleum terminal and storage tanks are being constructed in Yangon, to be completed mid-2015, which will increase fuel storage and handling capacity. Current fuel transport capacity can meet the local need and any increase from humanitarian organizations. Damaged roads and bridges can restrict transport by road, especially vulnerable is the corridor to Rakhine state, crossing Arakan mountain (Rakhine Roma).

There is about 2,775 miles of compressed natural gas pipeline and 430 miles gas pipeline offshore. The government is planning to open more CNG filling stations along this pipeline. A 562 mile gas pipeline, which went in operation July-2013 and a crude oil pipeline, expected to be finished in 2014, will transport gas and crude oil from Kyaikpyu in Rakhine state (West Myanmar) to Kunming in China (overland to North-East Myanmar), hereby avoiding higher risk transport for China, by vessel through the straight of Malacca. These two pipelines are expected to provide gas and crude oil to Myanmar as well.

Standards, Quality and Testing

Myanma Oil and Gas Enterprise (MOGE) has the responsibility of quality testing and control of fuel. There is no information available on national fuel testing capacity.

Industry Control Measures

Tanks with adequate protection against water mixing with the fuel

(Yes / No)

Yes

Filters in the system, monitors where fuel is loaded into aircraft

(Yes / No)

 Yes

Adequate epoxy coating of tanks on trucks (Yes / No)

 Yes

Presence of suitable fire fighting equipment (Yes / No)

Yes

Standards Authority

Is there a national or regional standards authority? (Yes / No)

Yes

If yes, are the standards adequate/properly enforced? (Yes / No)

 Yes

Testing Laboratories

Are there national testing laboratories? (Yes / No)

 No

Fuel Quality Testing Laboratory –

Name 

 NA

Address

 NA

Contact

 NA

Standards Used

 NA

4.7 Myanmar Fuel Provider Contact List

Source: Max Energy, http://www.maxenergymyanmar.com, Date: 28 Nov 2014,
Exchange rate 1 Usd: 1030 Kyat