May 26, 2017

Shell May be Among Foreign Firms Looking to Open Petrol Stations in Myanmar Soon

Companies from the US, Singapore and other countries have signalled their in­terest in running petrol stations in Myanmar, a senior investment official has said, raising the pos­sibility that well-known foreign brands may soon greet motorists at the pumps.

U Aung Naing Oo, Di­rector General of the Di­rectorate of Investment and Company Adminis­tration (DICA), said that although foreign inves­tors had not yet made any offical proposals, some had made inquiries about entering the retail fuel market.

“I can see that poten­tial investors are making preparations,” he said. “Sooner or later, they will come.”

He declined to name the companies who had made inquiries, but Myanmar Business Today under­stands that US-based Shell has been in talks with local conglomer­ate Max Myanmar about opening petrol stations.

U Win Myint, Secretary of the Myanmar Petro­leum Trade Association (MPTA), said his body had submitted a request to energy ministry for clarification on its policy towards foreign investors in the fuel industry.

The ministry would be required to give a recom­mendation before a for­eign company could win approval for a project from the Myanmar in­vestment commission.

U Kyaw Win, Minister for Planning and Finance, said in March that the locally-controlled retail fuel industry in Myanmar is partly insulated from fluctuations in the global price of oil, and that con­sumers have little choice but to pay up even when quality is low because of a lack of competition.

Source: Myanmar Business Today