Foreign firms will be likely be invited to compete to form a joint venture to distribute fuel in October, said Myanma Petroleum Products Enterprise (MPPE) director U Myint Zaw.
Private fuel importing has been allowed since 2010, but foreign firms have so far been prevented from setting up shop. The successful firm in the joint venture with state-owned MPPE will first be invited to update 12 state-owned petrol stations as a first step, then move into expanding locations, he said.
“There are no limits for the foreign partner after we have signed the joint venture,” said U Myint Zaw.
The three main reasons to invite a partner are to improve quality, quantity and price of imported fuel.
“These are the challenges we face right now,” he said. “We want competition to improve the market quality.”
The Ministry of Energy was once a main petrol vendor in the country with over 260 stations, but divested all but 12 of its stations as part of the post-2010 reform process. There are about 1012 privately owned station in the country at present.
The ministry is also planning to take action against petrol stations that do not meet standards and regulations.
Source: MYANMAR TIMES