Myanmar’s junta imposes a 100 percent fuel hike
Myanmar’s ruling military junta imposed a surprise 100 percent hike on fuel at state-owned gas stations on Wednesday, apparently to keep up with global oil prices.
As usual in the tightly controlled country, the price hike was not officially announced and car owners discovered the increases only when they drove up to fill their tanks.
The government, which holds a monopoly on fuel sales and subsidizes them, raised prices of fuel from 1,500 kyats (US$1.16; 85 euro cents) to 3,000 kyats (US$2.33; €1.71) per imperial gallon for diesel and to 2,500 kyats (US$1.94; €1.42) for gasoline.
A canister of natural gas containing 65 liters (17 gallons) was raised from 500 kyats (39 U.S. cents; 29 euro cents) to 2,500 kyats (US$1.94; €1.42).
“The price increase was posted on a notice board at the pump but no one explained the reason for the price hike,” one car owner told reporters.
Although no official reason was given many believe the increase stems from the government’s shortage of foreign currency to purchase fuel from abroad.
Although Myanmar’s gasoline prices are lower than those in many countries, fuel is relatively expensive for most in Myanmar, where a teacher, for example, earns about 40,000 kyats (US$31.30; €22.80) a month.
Myanmar last imposed a fuel hike in 2005.
Myanmar, also known as Burma, suffers from a constant gasoline shortage due to limited domestic oil production and limited foreign exchange reserves.
Gasoline has been sold under a rationing system in the country’s major city, Yangon, since 1980. Each car has a ration book, allowing car owners to purchase 227 liters (60 gallons) per month.
Vehicle owners who do not use their full quota often sell the excess fuel to black-market vendors.
Fear of spiraling food prices as a result of the hike sent housewives rushing to buy staples such as cooking oil, onions and rice while many drivers who did not bring enough money with them had to either return home or fill only a part of their tanks.
Since many buses and taxis are run with natural gas, commuters faced a shortage of buses running on the road.
The government has been promoting the use of compressed natural gas, or CNG, as an alternative fuel for vehicles since 2005. Myanmar is a major producer of natural gas.
Labels: Associated Press, English
posted by Michael Suantak @ 1:33 AM
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