Myanmar imports fuel oil by 500,000 tonnes up this 2019-2020 financial year against the year-ago period

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Myanmar imported nearly US$2.37 billion worth 5 million tonnes of diesel and gasoline over the past ten months of the current financial year, showing an increase of 500,000 tonnes compared to the corresponding period of last year, according to the Ministry of Commerce. However, the import values stood at $2.67 billion during a year-ago period, and the figures reflect a decrease of about $300 million this year, said an official of the Ministry of Commerce. 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, the domestic oil market has recovered a bit. The fuel oil was pegged at around at K505-535 for Octane 92, K635-645 for Octane 95 and K555-585 for diesel and K565-595 for premium diesel on 30 August in the domestic retail market, according to the local fuel oil market. 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 high of K1,065 per litre for Octane 92, K1,115 for Octane 95, K1,085 for diesel, and K1,105 for premium diesel.
Myanmar imports 90 per cent of fuel oil and produces the remaining 10 per cent 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)

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