This Week in Burma

Great Leap Forward

This week in Burma, we saw some sudden unexpected gas prices hikes; the price of compressed natural gas rises five times from 55 kyats per kilogram to 273 kyats, doubled the diesel price from 1,500 kyats to 3,000 kyats per gallon (4.5 liters) and gasoline 67% from 1,500 kyats to 2,500 kyats per gallon.

Some sources said that government cannot go on subsidizing gas prices any longer. They point out to the global oil-price rises and Burmese government’s foreign currency shortage. Maybe it is partially true, as Burma can no longer produce enough petrol for domestic consumption, and has been a net importer of fuel since a long time ago. And gas-prices in Burma are still quite cheaper than average international prices even after these big rises . With the new price, one gallon (4.54 litre) of petrol in Burma will be only about two US dollars; 1 US$ = 1200 kyats roughly.

But the question is why the prices of natural-gas along with petrol and diesel are increased? Burma is producing very large quantities of natural gas from its offshore gas-fields. Burmese government is getting billion dollars from gas sales to neighbouring countries. Those billion dollars from gas sales never reach to poor ordinary people in Burma. Despite billion dollar gas income, Burma is still enjoying highest infant and maternal mortality rates in the region; and highest TB, malaria and HIV rates; and lowest healthcare quality; and lowest education standard; and lowest level of telephone and computer users per capita. So even if the military government has no intention of sharing their billion dollar gas money with people on the streets, at least these poor people should get a chance to buy natural-gas, which their country produce abundantly, at a price they can easily afford.

Actually, even for petrol and diesel, Burmese government can subsidize prices quite easily because a strict petrol rationing has already been in place in Burma since a long time ago. A private car owner can buy only two gallons of petrol a week. With that kind of rationing and with low rate of car ownership in Burma, the Government with billion dollars gas-income can afford to subsidize petrol prices if they really want it. And if they have any intention of relieving poverty of ordinary people, the Government would have known that big sudden increase in petrol prizes will lead to dramatic rises in transportation expenses which will unavoidably lead to rises in prices of all essential commodities. The Asian Development Bank has already warned that further inflation would have a disproportionate impact on the large, poor, majority of the population, and it could also prompt further currency depreciation.

The problem in Burma is, the Government is not interested at all in people’s welfare; their first and foremost aim now is to become a North Korean style rogue nuclear power. And so they want to invest all their billion dollar gas money on buying nuclear facilities from Russia. It’s very much like the insane Great Leap Forward in China during communist Mao Hse Tong era; millions of Chinese were dying from starvation while their Chairman Mao leapt forward to nuclear power status.