Importers of Myanmar fuel blame shortages on Junta dollar controls

[ASEAN NOW Content Team]

 

Myanmar is experiencing fuel shortages as a result of the regime's monetary controls.

The regime-controlled Central Bank of Myanmar issued an order in early April requiring foreign profits to be deposited with licenced banks and converted for kyats at the official rate within one working day.

The dictatorship also mandated that gasoline be sold at set prices.

 

The dictatorship has not sold off its US dollars while tightening its control over the currency markets.
According to an oil importer, the lack of access to dollars has hampered gasoline imports, which have fallen.

"Imports are about half of what they were.
Major importers can no longer sell petroleum to the wholesale market, as they formerly could," the manager explained.

Another fuel importer claimed that businesses lacked cash.

"The paucity of US currency contributed to this fuel shortfall.
Imports are down by more than half.
Because we can't pay in dollars, no oil tankers have been unloaded.
Market demand is stable, but supply are limited, and stocks may run out," the insider added.

 

Fuel is mostly imported from Singapore, according to the regime's Global New Light of Myanmar newspaper, with monthly volumes exceeding 200,000 tonnes of gasoline and 400,000 tonnes of diesel.

According to market insiders, the government provides US dollars to major petroleum importers like BOC and Denko, but even these companies do not receive enough dollars to meet retail demand.

On April 20, the regime's monitoring body for petroleum imports, distribution, and supplies instructed distributors to sell at set rates.
In Yangon, 92 Ron octane cost 1,995 kyats per litre, 95 Ron octane cost 2,045 kyats, diesel cost 2,205 kyats, and premium diesel cost 2,235 kyats, with costs changing around the country.

 

"Unlike in the past, I can't wait until I'm out of gas since I never know if I'll be able to refuel," a Yangon taxi driver remarked.
In Yangon, we can still buy petrol, but I'm not sure about other places.
"The costs are excessive."