CNI News

13 December 2023

The difficulty purchasing the fuel is related to not only the people who own the cars in the country, but also all the people across the country.

So, it was necessary to solve the problem as soon as possible, economic commentators and advisors told CNI News.

If the problem could not solved within two or three weeks, the entire people of the country would suffer from other problems including high commodity prices. So, the problem that is difficult to buy fuel should not be taken lightly, U Thet Zaw, an economic commentator, told CNI News.

" Firstly, there may be problems in trade and transportation cases. There may also be a problem in passenger transport. There may be obstacles for the flow of goods. There may be difficulties for manufacturing business. Fuel is not allowed to be stored. But because the electricity is not available regularly, when the generators have to be used, fuel must be stored. And then, big generators are used at banks. When there is a power failure in banks and there is no fuel to run generators, if the banking operations stop, there is a possibility that the country's economy may become chaotic. So, the problem should be solved as soon as possible." said U Thet Zaw.

A fuel station

The problem came after a statement relating to foreign exchange had been released on 5th December by the Central Bank of Myanmar and has been one week long.

In spite of releasing the statement all of a sudden, the Central Bank should notify businessmen in advance so that they would have time to make preparations, pointed out economic commentators and advisors.

" Merchants will not sell their goods at a loss. So, it's like they're gradually selling their goods. People take the problem lightly when it starts taking place. In fact, it probably will be a great problem. The Central Bank alone can't tackle the problem. All related departments need to think about it to take action. Departments are weak in connection with one another. How are they playing politics above? They only know that." Ko Zaw Min Naing, an agricultural and economic advisor, told CNI News.

The farmers will grow summer paddy soon. Farmers use fuel to irrigate, drain and plough. If it was difficult to buy fuel for long, a lot of production could be reduced or no production could be conducted. Eventually, it was likely to face famine, he concluded.

Although the Myanmar Rice Federation has stated that it has planned to make farmers buy enough fuel and fertilizer at an affordable price to grow summer paddy, it must be watched, said Ko Zaw Min Naing, an agricultural and economic advisor.

While it is difficult to buy fuel, roadside shops that sell fuel double or thrice more expensive than fuel stations have arisen. 

People waiting to buy fuel with their cars (Su Myat Htwe)

Because the black market has appeared, fuel stations will no longer sell fuel to buyers who come without cars. However, factories, workshops and companies should be sold in some way as well, U Thet Zaw, an economic commentator told CNI News.

"Factories, companies, hospitals and clinics should also be allowed to purchase fuel with quotas. If there is a crisis in Myanmar, depending on the crisis, a class that take the opportunity and make money tend to arise. There are people who line up and resell to make money. Among these people are business people, too. It's not good to do so." said U Thet Zaw.

Because the people who come to buy fuel without cars are not sold, when there was a power failure in a certain hospital or clinic, there would be implications for patients who have to breathe oxygen, pointed out economic commentators and advisors.

Moreover, if fuel can be easily bought, the fuel price can be higher than the current price. So, the relevant authorities should consider the methods in advance about it, they suggested.