Burma: New Year ushers in rise in fuel, commodity prices

by Nem Davies

Friday, 04 January 2008 00:00

The Burmese military regime's promise notwithstanding that fuel prices will remain pegged at the last rise, vendors in various parts of Burma said fuel price in the black market has been on the increase. While the authorities officially set the price of petrol per gallon at 2500 kyat, and diesel per gallon at 3000 kyat, in the black market the actual prices are double the government's rates, vendors said. "In our shop, currently we sell petrol at 5000 kyat (US$ 4) per gallon. It has risen to this rate just last week," a petrol vendor at Sagaing town told Mizzima. Similarly, a vendor in Zigone town of Pegu division said the price of petrol has recently risen to 5200 Kyat from 4500 Kyat per gallon and diesel to 5800 Kyat from 4000 Kyat per gallon. "The fuel prices have rising steadily since the end of last year and it jumped to this rate after the New Year," added the local vendor. A bus conductor, who plies on the Magwe-Rangoon highway, said, with the rise of fuel prices, they were forced to raise the fares. "As the fuel prices are rising, we have to raise our fares to 7500 kyat from 5000 kyat," the bus conductor said. "For each trip we get 45 gallon from the government but it is not enough, we have to buy an extra 20 gallons. So, if we don't get at least 50 passengers, we operate at a loss. Last month we had a lot of passengers, but we usually face difficulties during the monsoon, as people stop travelling," added the conductor. The government, in a bid to counter rumors of the fuel price hike, through its state-own media, announced that the prices of fuel would remain constant. However, local residents in Rangoon said, the government has slashed down the daily quota of fuel from two gallons to only one gallon per day. Following the steady fuel price rise, the prices of essential commodities including oil, and beans, are on the rise. A local resident of Pegu town told Mizzima, "The price of soya bean oil has soared to 4000 kyat from 3200 kyat. It rose just recently after the New Year." < Prev   Next >