Myanmar imports nearly USD $ 3.14 billion worth fuel oil in 2019 – 2020 financial year20 Nov 2020
Myanmar spent nearly US$3.14 billion importing over 5 million tonnes of diesel and gasoline in the 2019-2020 financial year, according to the trade data released by the Ministry of Commerce.
Over 5 million tonnes of fuel oil with an estimated value of $3.26 billion flowed into the country during 2018-2019FY, the trade data issued by the Central Statistic Organization indicated.
The oil and gas sector has been crashed during COVID-19 outbreak. Oil price went negative on 20 April as there is no place to store all the crude the world is producing, but not using. The global market remains broken, leading domestic oil price plunge to more than 50 per cent in April against January’s prices.
Consequently, domestic oil prices have been on the decline since 10 January 2020 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. Then, the prices in the domestic market have extended its drop in May.
On 22 April 2020, the oil prices touched a low 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.
“Domestic oil price is positively related to the global market,” said a trader.
Oil price inched higher in the global market in August. In the global markets, oil prices stood at around US$45.8 per barrel for Brent oil and $42 per barrel for WTI crude oil on 30 August 2020.
The domestic fuel oil market showed a slight increase in oil prices in early August compared with late April.
At present, Oil stocks in Asia are rebounding, but there is a long way to go for a full recovery, as per global market’s price data.
The fuel oil was pegged at around at K485-515 for Octane 92, K615-630 for Octane 95, K510-555 for diesel and K520-570 for premium diesel on 18 November in domestic retail market, Myanmar Petroleum Trade Association stated.
On 10 October 2018, due to an increase in global crude oil prices and the weakening of the Kyat against the US dollar, oil prices had touched a remarkable high of K1,065 per litre for Octane 92, K1,115 for Octane 95, K1,085 for diesel, and K1,105 for premium diesel.
Ninety per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally.
Usually, 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 50 oil importer companies in Myanmar. — Ko Htet (Translated by Ei Myat Mon)
(The Global New Light of Myanmar: https://www.gnlm.com.