MYANMAR has imported nearly US$1.8 billion worth 3.3 million tonnes of diesel and gasoline over the past seven months of the current financial year, showing an increase of 400,000 tonnes valued $56 million compared to the corresponding period of last year, according to the Ministry of Commerce.
Between October and April of the current fiscal, Myanmar has imported $1.14 billion worth 2 million tonnes of diesel and 1.3 million tonnes of gasoline with an estimated value of over $740 million, as per data of the Commerce Ministry.
Domestic oil prices have registered a downward trend since January-end on the back of falling prices in the global markets, and it is expected to remain on the low side, said a market observer.
The oil and gas sector has been crashed during coronavirus 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. In the global markets, oil prices dipped to $16.8 per barrel for Brent oil and $11.24 per barrel for WTI crude oil on 22 April 2020.
Brent crude oil price on 9 May ranged $30.97 per barrel while WTI crude was priced around $24.74 a barrel, according to global oil markets. 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 been extending its drop. 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.
At present, fuel oil was pegged at around at K310- 345 for Octane 92, K450-480 for Octane 95, K405-480 for diesel and K415-490 for premium diesel yesterday in the domestic retail market, according to the local fuel oil market. “Sure, the drivers have been happy for months now as the price drops by half.
However, the majority of the people in the city stay at home due to coronavirus threats. The oil demand is extremely low and the oil market has collapsed across the globe," said a taxi driver. 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 touched a 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.
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 50 oil importer companies in Myanmar.—Ko Htet
(Translated by Ei Myat Mon)
