CNI News
7 January 2024
The questions why the fuel crisis that fuel stations in states and regions are experiencing fuel shortages have not been resolved are arising. Although the prices of fuel are high, fuel shortages are still taking place.
Although the Central Bank of Myanmar sold the US dollars last month, as the amount of money that was sold was insufficient, the US dollar was scarce and fuel stations have no ability to store reserve fuel, the fuel crisis is going on taking place, an economic analyst on condition of anonymity told CNI News.
" Mainly, the fuel stations are not able to store reserve oil. It's necessary to store reserve oil. Now, as soon as the fuel arrives, it is sold at once. If the oil tankers arrive a bit late, the fuel is no more in the market. Although the Central Bank sells dollars, it's not enough. The bank sells around 10 million dollars. But the fuel is imported for 1.5 million dollars each day. So, fuel importers have to find export earnings and then import fuel. But as you know, Chinese border trade has been affected at all. Thai border trade also has been affected very much. Those who import fuel are gradually finding it difficult to get dollars. They are kind of importing fuel for each day only." he said.
There was a shortage of petrol and diesel at some petrol stations in Yangon a few days ago. But fuel has been available again at present. In Yangon, the current price of diesel is 2,300 kyats per liter and that of 92 gasoline, 2,405 kyats per liter.
Fuel shortages occurred in the past due to price restrictions in selling fuel and foreign currency price regulations, U Thiha Paing, founder of the Via Logistics and Supply Chain, told CNI News.
" When fuel is being extracted from ships, there may also be fuel shortages. During the time between the entry of ships, there may also be fuel shortages. Moreover, due to the traffic jam, there may also be fuel shortages. Only if you pay the money, will you get the fuel. The main problem is that the price is unstable. There is a price issued by the fuel supervisory committee. There is a price you have to pay really when you buy the fuel. We have to wait for the decision between the two prices. So, there is also a delay. There is a price-adjusting problem between the price of buying in advance and the current price. So, there is a delay. Mainly, the problem is related to the logistics and supply chain. The previous fuel shortage was because of the dollar price problem." said U Thiha Paing.
Due to the government's control of the dollar in the past, there was a shortage of dollars. And then the fuel crisis arose. Although the dollar control has been relaxed at present, because export earnings through border trade is affected with territorial instabilities, there is still a need for dollars.
Moreover, because the dollar control has not been unconditionally relaxed at present, the fuel crisis might continue, said economic analystes.
