CNI News
8 December 2023
The government needs to solve the US dollar demand crisis as soon as possible to import fuel so that frequent high price of fuel and fuel shortages at fuel stations can be avoided, said economic commentators.
Although oil tankers have arrived in Thilwa Port, Yangon, it is not convenient for business people in extracting fuel because they are finding it difficult to buy US dollars.
The Ministry of Commerce should issue fuel import permits, U Thet Zaw, an economic commentator, told CNI News.
" Frankly speaking, some businessmen are making speculations and the ministry needs to issue fuel import permits. Now fuel tankers are at Thilwa Port. But the fuel can't take out from oil tankers. Business people are looking for US dollars so that fuel can take out. There is a shortage of fuel. I wonder how the government will help. The government had helped. But it was not effective. Middle men took advantage. A problem arose for the government The problem is that who will be commissioned by the government. But if the government cannot manage the problem, the fuel price probably will be 4,000 to 5,000 kyats per litre. If so, how can we go on? Our country has to subscribe to both edible oil and fuel. The government must plan to solve the problem ASAP or the country will reach crisis point." he said.
People waiting to buy fuel
The government sold dollars at 2,100 kyats per dollar to importers to import fuel and made them distribute at the price designated in the past. But at present, the government will sell dollars for diesel to be imported only.
If businessmen had to buy dollars at the market price to import gasoline, the price would rise sharply, said businessmen.
Rather than the prices were going up, it was more important to make the prices stable, U Thiha Paing, founder of the Via Logistics and Supply Chain, told CNI News.
" There is an economic theory in our economic world. That prices are going up is no problem. At any rate, those who can buy will buy. If you need something, you'll buy it. But price volatility is the problem. If the prices are volatile, you can't do anything. Now the dollar price is in chaos. You can't guess whether the price will go up or decline. So, sellers don't know whether they should sell or not. When the prices are stable, you can sell like others. It is necessary to make the prices stable. when a price are going up, remaining prices will go up including salary." he said.
Those who are waiting to carry fuel from Thilwa Port
Because there are some inconvenience in taking gasoline out at Thilwa Port, fuel stations in regions and states including Yangon are selling gasoline at a limited amount and some fuel stations have been closed.
Due to the current fuel crisis, the fuel prices are going up daily and the Octane price which was 2,100 kyats per litter in November has risen to 2,500 kyats per liter just now.
Fuel shortage crisis needs to be resolved within a few days or due to transportation delay, commodities probably will run out soon.
