Fuel prices seen as continuing to rise in Arakan State

By DMG 27 Sep 2021

DMG Newsroom
27 September 2021, Sittwe 

The cost of transporting fuel from Yangon to Arakan State is among the rising prices attributed to the recent appreciation of the US dollar against the kyat, leading to higher overall fuel prices in Arakan State. 

At present, the price of fuel in Yangon is over K1,300 per litre, and the cost of transportation ranges from K100 to K140 per litre. 

With the exception of the filling stations owned by Kyaw Zan Company and Denko in Sittwe, which have the rights to buy US dollars and import fuel from abroad, the price of fuel has risen to more than K1,500 per litre, said U Than Hlaing, chairman of the Arakan State Petroleum Trade Association (temporary). 

“They [Kyaw Zan Company and Denko] can buy dollars at a rate set by the government, so they can sell fuel at a discount,” he explained. “As I checked yesterday, one litre of fuel was going for K1,212 at a filling station owned by Kyaw Zan Company in Sittwe. Fuel prices are rising in the filling stations that are not allowed to buy fuel in dollars.” 

He added that prices could increase further as other petrol stations in Arakan State have been unable to sell to all petrol stations across Arakan State, because they were not allowed to sell petrol at government-set prices. 

“When prices are volatile, the money you invest today will not pay back tomorrow. We are having a hard time this month. We are selling at a loss to avoid fuel shortage problems for consumers. This is a big problem for the filling stations,” he said. 

The price of a gallon of octane in Minbya town has risen from K3,500 to K6,800, causing major headaches for consumers. 

“Fuel prices have risen from 6,200 kyats yesterday to 6,800 kyats today. In the past, my family was comfortable with my income. Now that fuel prices have risen, I can make 10,000 kyats per day [but] I can only pay K5,000 to my family because I have to spend about K5,000 for fuel and food,” said a three-wheeled motorbike driver from Myaungbway village in Mrauk-U Township. 

Previously, octane petrol was only K1,000 per litre, but now the price is rising due to the strengthening US dollar, with some petrol stations selling at up to K1,700 per litre.