The Ministry of Electricity and Energy (MoEE) has taken legal actions against three retailers under the 2017 Petroleum Products Law for selling fuel that did not meet quality standards, according to an update.
Stations that will face penalties include the following:
In February and March, the supervisory Sub-Committees on Petroleum and Petroleum Product Business Activities under the MoEE conducted spot investigations at 45 fuel stations in Mandalay, Ayeyarwady and Tanintharyi regions as well as Mon State.
Under the rules laid out in the 2017 Petroleum and Petroleum Products Law, first-time offenders are subject to fines ranging from Ks300,000 to Ks5m ($198 to $3,300) as well as up to one year of jail time. Repeat offenders will pay between Ks1m and Ks5m and can serve up to two years in jail. The full text of the law can be viewed on the MoEE website here.
In October 2019, the Myanmar Petroleum Trade Association (MPTA) announced that it would start fining retailers that do not meet quality standards Ks1m rather than the previous Ks500,000. It is assumed that these are the average fines, as there have also been reports of fuel stations having to pay up to Ks5m.
A representative from the MPTA previously told Myanmar Energy Monitor that starting from January, offenders may also be subject to jail time.
Authorities test fuel either at labs in Yangon Region and Naypitaw or using mobile fuel labs that make unscheduled visits to retail stations.
Higher profile retailers largely comply with fuel quality standards and safety regulations, but the industry is still rife with retailers that refuse to comply with best business practices.
Offenders are typically smaller retailers operating in rural areas, and common infractions include poor fire safety measures, dangerous loading and unloading processes, and low fuel quality.
However, consumers appreciate the relative convenience of these retailers, as many are located either in urban areas lacking licensed fuel stations or rural areas where larger outlets are not economically viable.
Data published by the Myanmar Petroleum Products Enterprise (MPPE) puts the total number of approved fuel stations in Myanmar at 2,733 at the end of March.