Myanma Petroleum Products Enterprise (MPPE) is to enter the petroleum distribution market, though uncertainty still surrounds the timing, officials indicated yesterday.
Most state-owned petrol stations, 260 in all, were privatised in 2010 after local companies were allowed to operate the petroleum business. The MPPE still operates the few remaining state-owned stations and serves as the industry regulator.
MPPE said last year it would invite foreign firms to enter a joint-venture project to import, store and distribute petroleum. “But we’re not sure when,” said the official yesterday, adding that some foreign companies had been observing MPPE facilities since January.
No explanation was offered for the apparent delay.
In response to a separate invitation from MPPE for foreign involvement in a joint venture jet fuel business at Yangon International Airport, Singapore-based Puma Energy has been selected to become the first overseas company allowed to run the jet-fuelling business privately in Myanmar.
“This is part of the public-private partnership model that we are heading toward. We want to exercise quality control over the domestic market in a competitive environment,” said an MPPE official.
So far JX Nippon and Sumitomo of Japan, Puma Energy, and PTT from Thailand have observed MPPT facilities.
There are 29 petroleum storage facilities and 12 petrol stations around the country that still belong to state-owned MPPE.
About 70 private companies run the country’s 1163 petrol stations, but few have storage facilities or an import licence.
The private petroleum distribution market is overseen by the Myanmar Petroleum Trade Association (MPTA).
MPPE, in partnership with foreign firms, will distribute imported petroleum products in both the wholesale and retail markets, said the official.
Source: Myanmar Times