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December 14, 2018

Yangon Region government plans to reduce fuel oil price

An employee at a gas station fills up a car while his colleague waits for another customer.  Photo: phoe khwar

The Yangon Region government is making arrangements to reduce the price of fuel oil, as the domestic prices are high compared with global prices.
“We can control the price of fuel oil if we can store a million gallons. Now, the price is under the control of those who are permitted to store the fuel oil. In the 2018-2019 fiscal year (FY), the Yangon Region government plans to control these things. We are planning to form a company,” said U Phyo Min Thein, Yangon Region Chief Minister, during the 15th meeting between the Vice President and entrepreneurs, which was held on 7 March at the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry.
“Fuel prices can be controlled if we purchase and store the fuel oil for six months or a year until the fuel price declines. In times of emergency, it is important for the country to be able to store fuel oil for long periods to maintain stability,” he added.
Dr. Win Myint, secretary of Myanmar Petroleum Trade Association, said the price of fuel oil and the profit margin in the 2017-2018 FY were at the level where they should be.
“We update the price of fuel oil daily on our association’s website. From the imported price and wholesale distribution price to the price in retail shops, profit percentage and transport charges, it can be seen that the prices are stable and reasonable,” he added.
“Many fuel oil shops were opened on lands without La Na 39 (farm land used for other purposes). There is no difficulty in granting permission to open a fuel oil shop according to the procedure, but there can be objections from neighbours. Then, the shops can’t be opened,” said U Phyo Min Thein.
There are some 70 fuel oil importing companies, and more than 2,000 fuel stations in the country. Most of the fuel is imported from Singapore. Some 200,000 tonnes of petrol and 400,000 tonnes of diesel are imported into the country every month. Petrol consumption in Myanmar increased six-fold over the past five years.

 

May Thet Hnin

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