Business license fees for fuel stations have been updated, according to Myanmar Automobile Industry Guide.
The updated license and other associated fees are as follows:
|
No |
Description |
Ka level |
Kha level |
Ga Level |
Gagyi level |
VMPS (Nga Level) |
|
1 |
License fees |
4,800,000 |
36,00,000 |
1,200,000 |
600,000 |
150,000 |
|
2 |
Renewal fee |
|||||
|
60% of license fee |
2,880,000 |
2,160,000 |
720,000 |
360,000 |
90,000 |
|
|
3 |
Penalty fee for expired license |
|||||
|
From 1 to 90 days, 2% of license fee |
96,000 |
72,000 |
24,000 |
12,000 |
3,000 |
|
|
From 91 days to 180 days, 5% of license fee |
240,000 |
180,000 |
60,000 |
30,000 |
75,000 |
|
|
4 |
Fee for reissuing lost license |
|
|
|
|
|
|
Reissuing license |
4,800,000 |
36,00,000 |
1,200,000 |
600,000 |
150,000 |
|
|
5 |
Ownership change fees |
|||||
|
License fees x 3 |
14,400,000 |
10,800,000 |
3,600,000 |
1,800,000 |
450,000 |
|
|
6 |
Name change fees |
|
|
|
|
|
|
10% of license fees |
480,000 |
360,000 |
120,000 |
60,000 |
15,000 |
|
|
7 |
Storage changes |
|||||
|
10% of license fees |
480,000 |
360,000 |
120,000 |
60,000 |
15,000 |
|
The notice also remarks that license fees are determined by the following criteria:
- Store size and horizontal width
- Storage capacity, pump quantity
- Other services provided, such as convenience store, automation system, fire safety, car cleaning
As of April 2020, there were 2,737 registered fuel stations in Myanmar, according to the Petroleum Product Regulatory Department (PPRD). Though it is not clear if this figure is active stations only or if it also includes those approved by the government but that have either not begun operations or have shut down. The PPRD has not published updated figures.
There are also numerous small and micro-fuel retailers across the country, many of which are not yet registered with the government.
Decreased demand, low fuel prices and supply chain disruptions have made it hard for fuel stations to turn a profit during the COVID-19 pandemic, with the PPRD announcing in July 2020 that 43 fuel retailers had returned their licenses.
Following the military takeover, fuel supplies have been impacted by logistics and banking disruptions.
The value of fuel imports in H1 FY2020/21 reached around $1.3bn, a year-on-year drop of $660m, according to Customs Department and Ministry of Commerce data cited by Global New Light of Myanmar.
In June, a notice from the PPRD obtained by Myanmar Transport Infrastructure Monitor revealed that the fuel stocks of private companies operating in Thilawa have fallen below 30% of storage capacity.
As a consequence of the fuel shortage, prices have risen steeply. As of early June, retail prices in Yangon were up some 40-50%, according to Myanmar Petroleum Trade Association (MPTA) data, exceeding pre-pandemic levels seen before the drop in global demand caused global oil prices to plummet.