CNI News
21 August 2024
Selling US dollars from the Central Bank of Myanmar whenever it was short of fuel could be convenient only in the short term, economic analysts told CNI News.
Due to the current fuel problem, 100 million US dollars would be sold by the Central Bank of Myanmar, it reported.
Because the money used for fuel each day in Myanmar is more than 10 millions US dollars, the amount of US dollars that the Central Bank would sell just would be convenient in the short term; the government should not control the fuel and dollars so that it would be convenient in the long run, an economic analyst told CNI News.
" The government must not control the fuel and dollar so that it could be convenient in the long run. The purpose of controlling them is good. It intends in order not to make the prices of them go up and not to speculate the prices. But the government doesn't have enough dollars. In a situation like this, not controlling is the best. The market will control itself. But as a side effect, exchange rates might rise and so might the fuel. If the government has controlled, the prices will rise as well and the black market will be bigger as well. According to the current economic situation, both conditions will encourage higher prices. So, the government must choose a situation of abundant fuel and rising prices or a situation of fuel scarcity and rising prices." he said.
While exchange rates are unstable, if there is a small gap between the past and the present, although there is no problem for the fuel entrepreneurs, according to the current situation, they find it difficult; the Central Bank cannot sell dollars sufficiently, pointed out economic analysts.
Moreover, the capacity of fuel oil storage tanks should be expanded, they added.
While seeing the people waiting to buy fuel oil
If the government asked fuel oil entrepreneurs to sell fuel oil at the prices designated, import permits should be given to them, suggested some businessmen.
If the government gave the permit like that, entrepreneurs could make a profit, the government must take responsibility and accountability.
Otherwise, economic framework could blast and monopolies could emerge, U Aung Pyit Sone, a businessman, told CNI News.
" In my opinion, this is a situation in which the economic framework could blast. I don't want to encourage it because this type was used in Bangladesh and Sri Linka. The fuel stations which sell at the price designated by the government could enjoy the permits issued by the government or could enjoy something beneficial given by the government, which they did so. But what kinds of fuel stations will be those sell at the prices designated by the government. What fuel stations will havehow monopoly? The problem is how they will use the permits. How long will these fuel stations sell at the prices designated by the government? Five or ten years? How often will these permits be granted during these years? It may encourage the country's economic collapse. Entrepreneurs might have corruption as well." he said.
While fuel oil shortages began under the SAC, the public and dealers panicked. But later, fuel oil has been sold to each motorcar with a quota system.
The fuel oil shortage is not just happening in Yangon, and other cities including Mandalay and Naypyidaw are also facing fuel oil shortage.
The Supervisory Committee on Import, Storage and Distribution of Fuel Oil would verify and carry out to tackle the problem, reported the SAC.
Moreover, Fueloil importer companies would have to submit their demands to the terminals and carry fuel oil to the fuel stations as soon as possible, stated the SAC.
