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Ministry of Energy

Myanma Petroleum Products Enterprise (MPPE)

 

About Myanma Petroleum Products Enterprise (MPPE) in brief

Myanma Petroleum Products Enterprise (MPPE) is a state-owned enterprise under the Ministry of Energy, and responsible to carry out retail and whole sale distribution of petroleum products in Myanmar.

  

    Aim & Objectives

  1. To mainly distribute the fuel produced by Myanma Petrochemical Enterprise, as well as the fuel imported, to the government and private sector in order to fulfill the local demand.
  2. To effectively distribute and sell the petroleum products in timely manner to the sales networks to fulfill the demand as much as possible.
  3. To encourage and enhance the private sector to take part in the state economic endeavors.
  4. To implement the Joint Venture Business (To upgrade fuel business from its present status to the international standards by collaborating with the foreign company which has strong investment and experience)

Background History of Myanma Petroleum Products Enterprise

          In 1978, the Section of Petroleum Distribution separated from its mother unit, the Myanma Oil Corporation and became a separate corporation, assuming a new name the Petroleum Products Supply Corporation.  On 1-4-1989, the petroleum Products Supply Corporation reformed and took a new name of Myanma Petroleum Products Enterprise.

Organization Chart of Myanma Petroleum Products Enterprise

          Shown in Appendix.

Current Activities of Myanma Petroleum Products Enterprise

1.    Myanma Petroleum Products Enterprise has its own headquarters office under which there are four departments, Department of Planning, Department of Sales and Distribution, Department of Finance and Department of General Administration. Under the management of Regional Head Officers, there are four main fuel terminals, 25 sub-fuel terminals, 11 aviation sub fuel terminals, 14 Divisional Marketing Offices and 12 state own fuel stations. 

2.    However with the aims of encouraging and boosting private sector to take part in the state economic endeavors and allowing private entities to cope with the open market policy of freely doing business of importing and distributing petroleum and petroleum products, the Union Privatization Commission privatized 261 petrol stations to private companies, allowing them to start doing the business freely since 10 June 2010. Nowadays Myanma Petroleum Products Enterprise is situated in four main fuel terminals, 19 sub-fuel terminals, 5 depots, 11 aviation sub fuel terminals. 14 Divisional Marketing Offices and 12 state own fuel stations.

3.       After privatization, in 2014-2015 the distribution of Motor Spirit is 123.99 million gallons, High Speed Diesel is 157.75 million gallons and Aviation is 17.25 million gallons. Before privatization, in 2009-2010 the distribution of Motor Spirit is 61.94 million gallons, High Speed Diesel is 82.11 million gallons and Aviation is 36.60 million gallons.

Filling Station (0354), Nay Pyi Taw

4.       In order for the public to purchase fuel conveniently throughout the country, new fuel stations and depots which meets prescribed standard rules and regulations, are allowed to operate, with the approvals of Ministry of Energy and issued license by Myanama Petroleum Products Enterprise. Up to 20-10-2015, there are 1651 private fuel stations, including the previously privatized 261 fuel stations and 6 depots are allowed to license.

Tank Farm at Therketa Sub Fuel Terminal

5.       The private companies and entrepreneurs are invited to submit proposal (application) for fuel distribution to the vessels both riverine and costal, the survey team will conduct field survey if the business meets the rules and regulations of the MPPE, the proposal/ application will be awarded to carry out the business.  Up to 20-10-2015, there are 14 vessels for 7 companies, are permitted to fuel distribution to vessels both riverine and coastal.

 

6.       And also those who interest in aviation fuel business, have to submit the proposal to Ministry of Energy. Now Pioneer Aerodrome Services Co., Ltd is allowed to do the aviation fuel business at Nay Pyi Taw International Airport. 

 

7.       The applications for importation of lubricants for new brand name have to be submitted the proposal to Myanma Petroleum Products Enterprise and get the approval from must be submitted to the Ministry of Energy. Up to 20-10-2015, there are 288 new brand names for 257 companies are allowed importation of lubricants.

8.       In order to supervise the business activities and control the quality and quantity of petroleum products in public sector more effectively and systematically, the Ministry of Energy has formed the Central Supervisory Committee for importation, storage, transportation, refinement, distribution and sales of petroleum products.  Sub Supervisory Committees are also formed in every state and region.  Moreover, the Myanmar Petroleum Trading Association and its respective branches have been established in all states and regions.  Therefore all these committee, sub-committees and associations have been well conducting their business of petroleum and petroleum products distribution throughout the country. On the other hand Myanma Petroleum Products Enterprise perform the activity of quality and quantity control of fuel in private fuel stations by frequently surprise check with mobile fuel lab.

9.       Myanama Petroleum Products Enterprise aims to upgrade the quality of existing business and service of the distribution of aviation turbine fuel to achieve international standards. Therefore, Myanama Petroleum Products Enterprise initially makes joint venture business in Mingalardon aviation subfuel terminal with tender awarded company, Puma Energy Group Pte. Ltd. The name of Joint Venture Company called National Energy Puma Aviation Services Co., Ltd. launched the business starting from 1-10-2015.

Refuelling at Yangon International Airport

 

10.     Furthermore, The joint venture business of the importation, storage, distribution and sales of petroleum products will also be conducted with the intentions of upgrading the quality of existing business and services to meet international standards with foreign company which has strong investment and experience. For this business VDB/Loi Law Firm is hired as a consultant. And now Myanama Petroleum Products Enterprise announced the ITT (invitation to Tender) in Ministry of Energy facebook on 9-7-2015, in New Light of Myanmar (English Newspaper) from 9-7-2015 to 13-7-2015 and, in New Light of Myanmar (Myanmar Newspaper) from 10-7-2015 to 14-7-2015.  After implementing joint venture business for petroleum and petroleum products, Myanama Petroleum Products Enterprise will carry on the business of sales and distribution of motor spirit, high speed diesel, lubricants, furnace oil, imperial diesel and other petroleum products (not including liquefied petroleum gas and liquefied natural gas).