Thailand
Myanmar: Fuel imports jump on Chinese re-export trade
A rousing trade for the re-export of vehicle fuel to China has pushed up Myanmar import volumes, according to the minister of commerce.
As of January 7, the volume spent on the import of motor fuel so far in the 2016-17 fiscal year was up US$90 million for diesel and $82 million for gasoline on the same period in 2015-16, according to U Khin Maung Lwin, assistant secretary at the Ministry of Commerce.
Most of the fuel imported to Myanmar is from Thailand and Singapore, he said.
Commerce ministry data indicates the jump has little to do with an increase in the number of cars, and is down mainly to the re-export trade, according to U Khin Maung Lwin.
“We can’t say the reason is the increase in the number of cars,” he said. “The main reason is the re-export of motor fuel to China.”
Myanmar imported over 2.1 million tonnes of diesel between April 1 2016 and January 7 this year at a total cost of $803 million, according to commerce ministry data. The country imported 770,000 tonnes of petrol over the same period at a cost of $465 million.
The country imported 1.3 million tonnes of diesel last year, and 640,000 tons of petrol. The total costs for those two fuels were $713 million and $383 million respectively.
The average price of petrol imports is almost unchanged, while the average price for diesel is considerably lower – $382 per tonne this fiscal year in comparison to $548 the previous year. But the huge jump in import volumes means the country is still spending more.
Around half of the additional diesel imported this fiscal year has been re-exported to China, whereas the great majority of imported petrol is sold in the local market, said U Khin Maung Lwin.
Source: http://www.mmtimes.com/index.php/business/24706-fuel-imports-jump-on-chinese-re-export-trade.html