Myanmar’s junta imposes fuel hike

Myanmar’s ruling military junta imposed a surprise 100 percent hike on fuel at state-owned gas stations on Wednesday, apparently to keep up with global oil prices.

As usual in the tightly controlled country, the price hike was not officially announced and car owners discovered the increases only when they drove up to fill their tanks.


The government, which holds a monopoly on fuel sales and subsidizes them, raised prices of fuel from 1,500 kyats (US$1.16; 85 euro cents) to 3,000 kyats (US$2.33; euro1.71) per imperial gallon for diesel and to 2,500 kyats (US$1.94; euro1.42) for gasoline.

A canister of natural gas containing 65 liters (17 gallons) was raised from 500 kyats (39 U.S. cents; 29 euro cents) to 2,500 kyats (US$1.94; euro1.42).

“The price increase was posted on a notice board at the pump but no one explained the reason for the price hike,” one car owner told reporters.

Although no official reason was given many believe the increase stems from the government’s shortage of foreign currency to purchase fuel from abroad.

Business Week