Fuel shortage causes chaos in Yangon: Is Myanmar’s economy running on empty?
As Myanmar‘s metropolis Yangon grapples with a fuel shortage, the city saw chaos with motorists queuing at dawn, hoping to secure petrol. The fuel crisis has been exacerbated by economic turmoil and geopolitical tensions.
Yangon’s fuel shortage, as reported by the state-run Global New Light of Myanmar newspaper, kicked off on Tuesday. The cryptic explanation attributed the crisis to delays in oil delivery from Thilawa Port to filling stations, leaving citizens and the media grappling for clarity.
A major player in this fuel shortage is the nosedive of the local kyat currency against the dollar since the military seized power in 2021. The plummeting exchange rate has severely handicapped importers’ capacity to foot the bill for vital fuel shipments, amplifying the scarcity.
As dawn breaks, Yangon streets witness an unprecedented sight — a cavalcade of vehicles stretching for miles. The sheer desperation for fuel has created long queues, turning the daily commute into a high-stakes race against the ever-dwindling petrol supplies.
In the Bago region north of Yangon, some petrol stations have resorted to rationing, limiting sales to a mere 20 litres per customer. Attendants share tales of closure due to week-long shortages, only to reopen with the grim reality that the available petrol might not last long, reported Thai PBS World.
Since the military coup in 2021, Myanmar’s economy has plummeted, setting the stage for this dire fuel crisis. The once-vibrant nation, gripped by pro-democracy protests, now faces economic ruin. The emergence of the People’s Defence Forces adds a layer of complexity, with clashes against the junta further throttling the already beleaguered economy.
Geopolitical quagmire
The World Bank’s grim projection for Myanmar’s GDP, estimating a mere 3% increase by September 2023, signals the profound economic woes. Severe supply and demand constraints persist, acting as shackles on the nation’s potential recovery.
Adding fuel to the fire, an alliance of ethnic minority armed groups launched an offensive in October against the military in northern Shan state. Capturing key border crossings and blocking vital roads, this alliance is strangling the junta’s access to tax revenue and foreign exchange, creating a financial quagmire.
Last week, the east of the country witnessed fighting that briefly blocked a crucial trade highway to neighbouring Thailand. As the nation’s largest trade partner, any disruption in the relationship with Thailand intensifies the economic storm Myanmar is weathering.
