Mizzima
Some filling stations in Yangon have suspended the sale of Octane 92 petrol as they are facing difficulties in buying fuel from wholesalers, shortage of fuel in the market and no fresh arrival of fuel.
The business community say that some filling stations reduced the sale after the news appeared that there would be a new export-import policy on 1 March.
The new policy by the Central Bank of Myanmar (CBM) is a 70/30 ratio in which 70 percent of export earnings of the exporters must be exchanged at the CBM’s exchange rate and the remaining 30 percent can be exchanged at the market rate. This new policy will apply from 1 March to 31 March.
Though the concerned ministry of economy and commerce has not yet officially disclosed this new policy, the business community is in a “wait-and-see” mode as this unconfirmed news circulates.
Myanmar has been facing frequent fuel shortages, inflation and rising commodity prices during the last three years since the military coup. The country experienced the worst ever fuel shortage in December 2023, besides nearly 20 such shortages over the last three years.
The business community said that the problem of severe fuel shortage in the country was caused by the wrong policy of the Military Council in controlling and restricting the inflow and outflow of US dollars after the military coup in February 2021.
The Military Council wants to reduce their budget on fuel import and they use a quota system in fuel import business as they are facing the lowering foreign reserves in their hands.
According to data compiled by the fuel importers that the fuel import before the military coup was total over 600,000 tonnes per month from both border trade and maritime trade.
But after the coup, the fuel is being imported by maritime trade only and it has fallen to nearly 370,000 tonnes per month, virtually half of pre-coup figures.
The prices of fuel in the market on 1 March was 2,175 Kyats per liter for Octane 92 petrol, 2,825 Kyats per liter for Octane 95, 2,585 Kyats per liter for premium diesel and 2,525 Kyats per liter for diesel respectively.
