Myanmar: New Licensing Framework for Biofuel Distribution in Myanmar

On 5 August 2025, the Ministry of Energy (the “Ministry”) of the Republic of the Union of Myanmar issued Notification No. 38/2025, introducing the Order on Licensing for the Domestic Distribution and Sale of Biofuels Blended with Petroleum Products (“the Order”). The Order establishes a formal framework for licensing businesses engaged in distributing and selling blended biofuels in Myanmar.

Key Highlights:

Eligible Applicants

Individuals, companies (including foreign companies registered with the Directorate of Investment and Company Administration), and organizations seeking to distribute and sell blended biofuels.

Licensing Process

Initial Application: Submit application for a license, along with supporting documents including land lease agreement or land ownership evidence, to the Petroleum Products Regulatory Department (“PPRD”) under the Ministry.
Site Approval: PPRD reviews the application and approves the proposed site layout and design. A minimum land area of 1.0 acre is required.
Post-Construction Submission: After construction in accordance with the approved plan, applicants must submit an application for a business license to the PPRD with all required endorsements, storage license, quality testing certificates, and recommendations from the specified regulatory authorities.
Site Inspection: PPRD conducts a site inspection to verify compliance with prescribed requirements.
License Issuance: If the site is compliant, PPRD submits a report to the Ministry, which issues a one-year business license upon the payment of license fees.

Licensee Duties

License Renewal: Licensees must apply for renewal at least 60 days before the business licenseexpires.
Storage and Blending Compliance: Biofuels must be stored and blended in accordance with the Ministry’s technical and safety requirements.
Quality Testing: Biofuels must be tested at a Ministry-recognized laboratory, and valid test certificates must be maintained.
Sample Preservation: Biofuel samples must be preserved for a minimum of 60 days for verification purposes.
Compliance and Taxes: Licensees must comply with all conditions of the business license, adhere to applicable laws, and pay all relevant taxes and fees.

Conclusion

The Order outlines the procedures and requirements for licensing and operating businesses involved in the distribution of biofuels blended with petroleum products. Entities intending to operate this business activity should prepare for both regulatory approvals and ongoing compliance duties.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.