Reports of fuel shortages due to CDM challenged: Import levels are normal

Reports of fuel shortages due to actions of the Civil Disobedience Movement (CDM) are not supported by the Myanmar Petroleum Importers’ Association (MPIA). 

Dr. Win Myint, Secretary to the Association, reports that import levels remain normal. 

Six vessels brought imported petroleum this month alone, despite reports that government refueling was suspended due to the closure of government departments.

Myanmar spends more than US $ 400 million a month on fuel imports.  Foreign oil companies also deliver oil roughly every 10 days as needed, according to Dr. Win Myint.

However, as traffic and transportation is disrupted due to street protests, there is less demand.  “It is very difficult for cars to get to the gas stations due to the protests said Nai Sahan, at a petrol station in Ye Township.

Oddly, although demand has dropped prices for petrol have jumped sharply in recent months — Octane 92 is 770 Kyats per liter, Octane 95 is 880 Kyats per liter, Diesel  500 PPM is 810 Kyats per liter and premium diesel is 820 Kyats per liter.

“If the importing of petrol stops, all machinery will stop, not only the public vehicles but also the planes will stop. It will not be enough to run on domestic fuel alone,” speculated one official from a petrol company to the BBC news.

The closure of banks could hamper the importing of petrol, but some importers suggest that is not a major concern, as diesel fuels can be imported by sea as well as overland via Thai border trade routes.