Notice on Fuel Sale & Distribution

Due to ongoing conflicts in the Middle East, disruptions have occurred in the Strait of Hormuz, through which approximately one-fifth of the world’s oil supply is transported. As a result, global crude oil prices have risen continuously, leading to increases in fuel prices and causing various difficulties.

The government has been coordinating and supervising efforts to ensure that fuel supplies do not run out, and the fuel has been continuously replenished and is being distributed regularly. Through systematic management and controlled usage, the country has now achieved a reserve for up to 60 days. Moreover, to ensure fuel security, the government has engaged in discussions and negotiations with partner countries, securing agreements for the importation of not only fuel but also other petroleum products.

Although global fuel prices have increased, the government takes measures to prevent significant rises in domestic fuel prices. Compared to other Southeast Asian countries, domestic fuel prices remain at a reasonable level.

Comparison of Fuel Prices Among ASEAN Countries

Moreover, tax exemptions have been granted on the import of regular diesel used for transportation, allowing it to be sold at K5,752 per litre (US$1.423 per litre).

When comparing the increase in crude oil prices with that of refined fuel prices, it can be observed that while crude oil prices have risen at a relatively lower rate, refined fuel prices have surged significantly.

Table for Comparison of Crude Oil, Petroleum and Diesel Prices

Therefore, if crude oil can be purchased and refined domestically, the public would be able to access fuel at more affordable prices. And so, the government is implementing plans to expand and construct new oil refineries and upgrade the existing facilities.

Moreover, if sufficient domestic production of crude oil can be achieved, public concerns regarding fuel availability would be alleviated. And, the government is making efforts through various means to increase crude oil production.

The government directly distributes domestically produced fuel to consumers for motorcycles, three-wheeled vehicles, and some motor vehicles at K17,252 per gallon of RON 68, at K17,707 per gallon of RON 72, whereas at K10,000 per gallon of diesel for the farmers. Plans are also in place to continue such distribution.

At present, the public has been actively cooperating by demonstrating understanding, empathy, and a positive attitude, such as providing suggestions, sharing knowledge through social media, reporting harmful activities to call centres, and the media also avoids publishing misleading or panic headlines. For such cooperation, the fuel distribution operations have become more stable.

Therefore, the public is urged not to engage in panic buying or stockpiling fuel out of fear of shortages. Purchasing only what is necessary will reduce time loss and inconvenience for individuals and help decrease the country’s foreign currency expenditure. The Ministry of Electricity and Energy respectfully requests continued public cooperation in implementing these measures for the benefit of all citizens.

Ministry of Electricity and Energy

#TheGlobalNewLightOfMyanmar