Analysts say purchase of Russian oil won’t be effective change

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Mawlamyine, September (21)

The military council plans to buy fuel from Russia due to the lack of foreign currency and frequent fuel shortages, but economic analysts say that there will be no effective changes in the market.

The military council had initially planned to buy 30,000 tons of fuel from Russia to solve the fuel shortage problem, but the military council has not yet been able to answer the question of when the fuel will arrive in Myanmar.

Economic analysts consider that the plan to buy fuel oil from Russia is a mile-long waterway, and because of the problem of high general costs, it is impossible to buy as much as needed, and there will be no effective changes.

Therefore, the military council must control the value of the dollar in order to address the fuel oil issue. If not, they claim that there is no chance of the fuel price declining as much as expected.

According to General Zaw Min Tun, spokesman for the Military Council, fuel oil obtained from Russia will be used primarily for civil servants, transportation, and railway sectors.

The Military Council is saying that the Russian fuel tankers will arrive this month, but in the country , diesel prices stood at  more than 2,700 kyats per liter and gasoline (95) at 2,300 kyats per liter.

The military council has formed a Russia oil purchasing committee, and the chairman of the military-owned Myanmar Economic Corporation, Lt. Gen. Nyo Saw, has been appointed as the committee’s chairman.

The military council is seeking to import fuel from Russia, but fuel suppliers are often facing shortages because they are buying the fuel sold by the military council on a quota basis.

The cost of gasoline was only about Ks 600 per liter under the NLD government; however, following the military takeover, this price has skyrocketed to a record high of about four times, and price volatility and shortages are common.

News- Than Lwin Times

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