Myanmar’s military regime says it will restart the Thanlyin refinery in Yangon this September, as the country grapples with severe fuel shortages. Energy Minister Ko Ko Lwin told President Min Aung Hlaing that Phase I of the project, designed to process 500,000 tons of crude oil annually, is finally ready. Built in 1925 under British colonial rule, the refinery was shut down in 2017 due to poor output and limited supply. After the 2021 coup, the junta launched construction of a modular facility, promising jobs, lower fuel prices and reduced imports. A second phase, targeting 3 million tons per year, is scheduled for completion by 2028. Officials had initially pledged Phase I would be operational by late 2025, but the timeline has slipped to September. Myanmar currently imports 97 percent of its fuel needs, leaving the economy exposed to global market volatility and sanctions. To ease shortages, the regime has rationed sales and sought discounted crude from Russia, while also advancing a parallel project with China to supply the Thanbayarkan refinery in Magwe Region. Critics remain sceptical, arguing that the junta’s promises are unlikely to solve Myanmar’s chronic reliance on imports. For now, the restart of Thanlyin is presented as a “milestone” — but whether it delivers real relief to consumers is far from certain. -2026-07-21
