Gas prices spiral to all-time high

by Mizzima News

Sunday, 04 May 2008 17:12

Chiang Mai – Gas prices have risen nearly 20 percent over the past week, reaching an all-time high of 7,000 kyat per gallon in Burma.   Gas stations under the Energy Ministry have stopped selling fuel, and the situation is likely to persist for at least two more days. The prices of gasoline and diesel on the black market have gone up to 7,000 kyat (about $6.30) and 7,800 kyat ($6.80) per gallon, respectively, from 6,000 kyat ($5.40) and 6,500 kyat ($5.90) as of last Wednesday.   Gas stations selling compressed natural gas under the ministry remain shut.   Due to limited domestic oil production, cash-starved Burma has been selling gasoline and diesel under a rationing system since 1980.    A ration booklet for a car can be purchased, entitling the owner to a maximum of 60 gallons per month.   In August of last year authorities increased fuel prices without prior announcement, triggering the Saffron Revolution led by Buddhist monks in what were the biggest street protests since 1988 against the military junta.   Cyclone Nargis, registering winds just under 200 kilometers per hour, ravished lower Burma on Saturday causing heavy damage in Mon and Karen States as well as Irrawaddy and Rangoon Divisions.    State-owned TV said 239 people were killed in Irrawaddy Division, while four died in Rangoon. Among the fatalities in Irrawaddy Division, 53 alone were from Hine Gyi Island, where the Burmese Navy is based.   Myanmar TV showed images of the damage, which included ships docked in Rangoon harbor and uprooted trees and electric poles in Rangoon, the biggest city in Burma.   A citizen journalist earlier told Mizzima that at least five people were killed in the cyclone on Saturday in Rangoon.   A lack of infrastructure in the impoverished country combined with the junta's usual tight lipped approach to the dissemination of information, has led to little reliable information coming out of Irrawaddy Division, likely the heaviest hit region of the country. Speculation is rife that causalities could be higher than the officially quoted figure.   Few images of the devastation have been leaked, those that have coming mostly via satellite and from telephone lines which are still functioning.   Authorities at Rangoon's General Hospital, the biggest such facility run by the government, refused to talk, saying, "We have no permission to talk to the media." Eyewitnesses told Mizzima the hospital suffered severe damage. However, reportedly, some patients were still admitted to the hospital with injuries.   Rangoon residents rushed to the markets today to buy charcoal for cooking, the price of which has skyrocketed 25 percent to 10,000 kyat ($9.00) for a 16 kilogram bag. Adding to people's woes is a power and drinking water shortage.   Cooking gas prices also increased by 25 percent to 25,000 kyat ($22.70), from an earlier rate of 20,000 kyat ($18.20) for a 25-liter cylinder.   The prices of essential commodities like food are increasing rapidly, as well with eggs are in high demand.   Bus routes have been damaged and only a few buses are plying the streets due to the shortage of fuel. Bus fares have gone up 150 percent to 500 kyat, from 200 kyat.   "Taxi drivers are asking for exorbitant fares so we are all walking," said a resident who was lucky to have her telephone functioning.   A military helicopter was seen hovering in the Rangoon sky, either to take stock of damages or for security concerns. However residents were surprised at not seeing the Swan Arr Shin and members of the government backed Union Solidarity Development Association, the eyes and ears of the regime, on the streets.    Debris from the cyclone is being cleared by the public and many streets are a mess. Television images reveal that Rangoon, the garden city, is now without much of its foliage.   An eyewitness said that the Home Ministry building in Bahan Township was heavily damaged along with the roof of Yuzana Plaza.   The cyclone affected both the opposition political party National League for Democracy (NLD) and spies of the military regime.   Party signboards at NLD headquarters in Bahan were damaged and a teashop commonly used by military intelligence and special branch personnel to sit and monitor opposition activities was totally destroyed.   However, there is some good news. According to the latest news Mizzima has received, an Air Bagan flight with passengers today flew to Rangoon's Mingaladon Airport, signaling that the country's primary international gateway will again soon be functioning up to capacity. < Prev   Next >