CNI News
14 Sept 2022
Oil will be imported from Russia to ease shortages and high prices of oil, according to Major Gen Zaw Min Tun, the leader of the True News Information Team of the SAC.
Rising basic commodity prices due to high oil prices might fall to some extent if oil can be imported from Russia at cheaper prices, economic observer U Aung Pyae Sone told the CNI.
He said, “If we can control oil prices, impacts on other commodity prices can be reduced to some extent. As oil prices have risen, other commodity prices have increased. If oil prices drop by MMK 500 per litre, other commodity prices like corn and potato will decrease. However, oil prices may not fall significantly but we can buy oil from Russia without spending dollars.”
Some analysts estimated that current oil prices may fall by half when oil imports from Russia arrive.
However, others said that oil may fall to MMK 2,000 per litre as current domestic oil prices are calculated based on global prices.
Myanmar imports US$ 400 million worth of oil every month and if oil can be imported from Russia in Rubles, US dollar prices can also be controlled, U Aung Pyae Sone said.
He told the CNI, “As far as I know, Myanmar imports oil from Singapore in US dollars. Now, Myanmar will import oil from Russia in Rubles. Diesel and gasoline prices stand at MMK 3,000 and MMK 2,500 per litre respectively. Some people think oil prices will drop to MMK 1,500 per litre. Whether we import oil from Singapore or Russia, we have to pay at global oil prices. So, oil prices may not drop significantly. Oil may drop to MMK 2,000 per litre. As we import oil from Russia in Rubles, we can control US dollar prices.”
A market in Yangon. (CNI)
Recently, Maj Gen Zaw Min Tun said two 15,000-ton tankers were arriving at Yangon port and oil would be distributed to the public at cheaper prices.
However, he did not elaborate on purchasing prices of oil and how to distribute the imported oil to the public.
China and India are importing oil from Russia at half the prices in the global market and it would be beneficial if Myanmar can buy oil from Russia at the same prices, an economist, who requested anonymity, told the CNI.
“Russia is looking for new markets as the United States and Europe have imposed sanctions on it. China and India are importing oil from Russia. It is said that they can buy oil from Russia at half the prices in the global market. If we can purchase oil from Russia at the same prices, it is beneficial for us. Whether it is beneficial or not depends on importing prices,” he said.
Currently, oil is being rationed to filling stations in the entire country but some filling stations have to shut down due to shortages and rising prices.
