Fuel oil importers to request Ministry to review invitation of FDI

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A worker fills a car with fuel at a petrol station in Yangon on 21 March 2017. Photo: Aye Min Soe

Fuel oil importers and distributors are reported to have requested that the Ministry of Planning and Finance review  the invitation of Foreign Direct Investment (FDI) to the local fuel oil market, according to Myanmar Fuel Oil Importers and Distributors Association.
The association and its members met at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) on 21st March in order to discuss the matter that foreign petrol stations are gearing up to enter domestic market, Union Minister U Kyaw Win said on 18th March at the meeting with the chairman of the Myanmar Investment Commission and Foreign Business Communities.
Currently, Myanmar’s fuel oil market is exclusively held by Myanmar citizens. The prices offered by local petrol stations remained on the rise despite the drop in international fuel oil market. The Planning and Finance Ministry will allow foreign investors to invest in the local fuel oil market in order to have better quality, service and prices for local consumers, said U Kyaw Win.
The steady increase of the fuel oil price in the domestic market was attributed to inadequate capital, indirect import of fuel oil from abroad, the high tax rate and transportation charges, said those engaged in petrol stations.
“We need to see first whether the local petrol stations have the competency of market if the foreigners are allowed to invest in local fuel oil business, because the local sellers might meet the difficulties and challenges”, said U Win Myint, the secretary of the Myanmar Fuel Oil Importers and Distributors Association.
The Ministry of Electricity and Energy has granted licenses for over 2,000 private petrol stations.—Ko Htet

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