Arakan State’s tourism, travel industry hard-hit by rising fuel prices

By DMG 03 Mar 2022

DMG Newsroom
3 March 2022, Sittwe

With the price of fuel skyrocketing globally and domestically, Myanmar’s tourism, travel and logistics industries are contending with related difficulties at a time of already existing, enduring struggles in the wake of last year’s military coup and the ongoing Covid-19 pandemic.

Ko Aung Kyi Moe, a Hijet truck driver in Sittwe, told DMG that some passenger vans plying routes from Kyauktaw to Mrauk-U and other trans-township routes were likely to stop running due to the ongoing rise in fuel prices.

“As fuel prices rise, so do the problems. Previously, you could rent a short trip or a long trip for around K40,000. Filling stations are understaffed and people are reluctant to buy. With this kind of price increase, even car owners will consider stopping operations,” he added.

U San Maw Thein, manager of the Shwe Pyi Tan boat service, told DMG that private boat operators in Arakan State were also suffering from rising fuel prices.

“If fuel prices keep going up, it will not be good for us,” he said.

Due to the high prices of gasoline and diesel, some trucks have stopped running routes and some goods have to be transported at a higher price, according to drivers who transport goods between Yangon, Mandalay and Sittwe.

“Some truck drivers stopped because the fares did not match the [operating] costs,” an unnamed truck driver told DMG. “Some truck drivers stopped the transportation of goods because the fares did not match the costs. From the merchant’s point of view, the price of one viss was K100, but now it is around K120. As a result, the flow of goods has been delayed.”

According to an official from the Arakan State Petroleum Distribution Association, the rise in the price of fuel is due to the high cost of transporting petrol to Myanmar and the rising price of fuel globally.

“As fuel is imported from abroad, it is being sold at wholesale and retail prices all over Myanmar via Thilawa Port in Yangon, depending on the foreign price and the import price,” U Aung Htike, vice chairman of the Arakan State Petroleum Distribution Association, told DMG.

He went on to say that the cost of transport and electricity metre bills have both increased.

“Fuel is transported from Yangon to Sittwe by petrol tanker, so the transportation charge is K120 per litre. This means that the wholesale price of a litre of fuel at the Thilawa Port in Yangon is K1,610, which is sold at K1,730 in Sittwe. We add at least K80 per litre, plus staff costs, investment costs, electricity bills, and general expenses,” U Aung Htike explained.

The cost of travel in Arakan State has also risen, according to a Kyauktaw resident.

“Now the Kyauktaw-Sittwe bus fare has increased to K10,000 from K7,000. Passengers have to travel for health or social reasons, which is inconvenient due to rising car prices. In this time of economic crisis, the extra K3,000 is another problem,” said Ko Kyaw Mrat Soe, a resident of Kyauktaw town.

Similarly, the cost of a trip from Sittwe to Rathedaung has increased from K5,000 to K8,000 per person. Bus fares are also reportedly rising on routes to Minbya and other places.