Natural gas supplies plummet in Myanmar amid import limits

The price of gas used by many for cooking has more than tripled.

The price of gas commonly used in Myanmar for cooking has more than tripled amid massive supply shortages since the February 2021 coup d’etat, with some families being forced to switch to charcoal.

A lack of regular electricity in Myanmar means many homes and restaurants relied on liquid petroleum gas, or LPG, which is imported under a strict licensing regime controlled by the government.

Myanmar’s military junta only issues import permits to select individuals who are close to the military, resulting in a near monopoly in the sector and shortages, gas sellers told Radio Free Asia.

“Gas prices are rising every year due to two main issues: monopolization at the ports, and the increase in dollar prices, along with the restricted allocation of import licenses,” the manager of a gas wholesaler in Yangon told RFA on condition of anonymity.

“If there were no monopolies and import licenses were not limited, prices could drop by up to 40 percent from their current levels.”

RFA inquiries to sellers across Myanmar indicate that while there is no uniform price in the country, the cost of one “viss” container of gas, which is equal to about 1.68 kilograms or 3.5 pounds of natural gas, ranges from 12,000 to 20,000 kyat, or about US$2.6 to $4.4.

That is up significantly in a matter of only months.

“Last year, the price was only 3,700 to 4,000 kyat per viss,” said Ko Daung, a resident of Yangon who told RFA that the price of gas had steadily increased and made his everyday living costs skyrocket.

“In a short period, it jumped to about 8,000 kyat per viss. Now, it is over 10,000 kyat,” he said, adding that shortages had complicated things. “Even if you spend more than 10,000 kyat, you can’t fill up at gas shops anymore. Since I can’t get gas, I’ll just have to use charcoal.”

All legal LPG in Myanmar is imported by sea and distributed from the port in Yangon. Some gas is also smuggled across the border from Thailand, but recent floods in Myanmar’s border states of Mon and Kayin had cut off many of the roads used by smugglers.

RFA sought comment about the price rises from Min Min Oo, the deputy permanent secretary of the Ministry of Energy, but did not receive a response. Major General Zaw Min Tun, a spokesman for the military junta, also could not be reached for comment.

Ko Daung, the Yangon resident, said he hoped authorities would prioritize the issue before prices went up any further.

“It’s becoming unaffordable for us. If we could get gas at a lower price, we could save money for other essential needs in our lives,” he said.

Translated by Kalyar Lwin. Edited by Alex Willemyns.