Junta demands $257m from fuel firms over dollar scheme

The Irrawaddy

Myanmar’s military regime has ordered major fuel importers to repay more than 540 billion kyats — around US$257 million — accusing them of manipulating the dollar market and costing the state billions over recent months. Companies have reportedly been warned that failure to comply by the end of January will result in criminal charges.

The order follows a series of investigations into alleged irregularities in the fuel sector, including dollar speculation, bribery and breaches of import quotas. Among those questioned were Deputy Energy Minister Thant Sin and Director‑General Shwe Maw. Thant Sin, a classmate of Prime Minister Nyo Saw at the Defence Services Academy, was dismissed from his post on 25 November.

Several of Myanmar’s largest fuel companies have been named in the repayment demand, including Best Oil Co, Myat Metta Mon, Max Energy and Denko. Industry sources say the sums owed were calculated according to import volumes, with the total exceeding 500 billion kyats.

Fuel importers have operated under tight restrictions since late 2022, when the junta imposed quotas and required companies to seek approval from the Foreign Exchange Supervisory Committee for both import quantities and the dollars needed to purchase fuel. The system has given officials significant control over the market at a time when the regime faces severe foreign‑currency shortages.

Thant Sin, who chaired the fuel import and distribution committee, remains under investigation. Sources claim bank accounts belonging to his family members were also used in transactions linked to the alleged manipulation. Further action is expected once junta chief Min Aung Hlaing returns from domestic travel.

One importer said companies exceeded their quotas four to five months ago, prompting the regime to withhold the extra fuel before recently releasing the stocks. “But companies will now have to pay for the extra amount they imported,” he said.

Those who fail to repay face potential prosecution under Penal Code sections 406 and 420. Section 406, covering breach of trust, carries up to three years in prison, while Section 420, fraud, carries up to seven years. Lawyers note that although both offences are technically bailable, large‑scale financial cases often see bail denied.

The dispute adds further strain to an economy already battered by conflict, sanctions and chronic currency instability — and underscores the junta’s tightening grip on Myanmar’s fuel sector.

-2025-12-14