Petrol stations selling on quota basis amid rumours of fuel shortage

By DMG 19 Apr 2022

DMG Newsroom
19 April 2022, Sittwe 

Gas stations in Arakan State and elsewhere in Myanmar began selling fuel on a quota basis Tuesday, with long lines reported in the commercial capital Yangon and other cities amid concerns about a looming fuel shortage, which the military government has denied. 

In Arakan State, filling stations have been instructed to limit sales to K20,000 worth of fuel per small vehicle and K5,000 worth per motorbike per day, Arakan State resources minister U Than Tun told DMG. 

“This is not happening in Sittwe alone, but across the country. We heard there was a problem with paying US dollars for fuel imports. We still don’t know the details,” he said. 

Fuel prices jumped because fuel importers at Yangon’s Thilawa Port had difficulties making payments for imports due to the Thingyan holiday, said U Than Hlaing, chairman of the Arakan State Fuel Distributors Association. 

“There were some problems with making payments due to the Thingyan holiday. We raised the issue with the minister this morning. So our association has made a plan to sell fuel on a quota basis,” he told DMG. 

“Some gas stations totally ran out of fuel during the Thingyan holiday. Petrol tankers are on their way [to Arakan State]. But we can’t get enough fuel for now. So, we have made a plan to limit the sale to customers so that everyone can have it daily. When we can buy fuel from Thilawa Port, we will lift the quota,” U Than Hlaing added. 

The junta-controlled Ministry of Electricity and Energy has said there is no imminent fuel shortage in Myanmar as the country still has 45 million gallons of petrol and 70 million gallons of diesel stockpiled, plus two tankers that have arrived in Yangon but have not yet unloaded their fuel due to the Thingyan holiday. 

On Tuesday in Sittwe, a litre of 92-RON octane was being sold for K2,250, petrol sold for K2,000, diesel sold for K1,380 and premium diesel sold for K2,400, according to a Htoo Group gas station in the Arakan State capital. Prices have increased by K50 on average compared with April 17. 

“Fuel prices have increased by K200,” said Sittwe taxi driver U Htay Win. “But we can’t ask for higher fares from customers. I won’t be able to run the taxi if petrol prices reach K2,500 per litre.” 

Myanmar’s commercial capital and largest city Yangon, meanwhile, saw long vehicle queues at gas stations throughout Tuesday. 

“Some filling stations were selling on a quota basis because of a sudden increase in demand. Traffic was already building up since the morning because of the vehicles that queued for fuel,” said a truck driver in Yangon. 

Junta spokesman Major General Zaw Min Tun on Tuesday told the online news site One News Myanmar that the country has enough fuel to meet demand, and urged people not to worry.