Myanmar factory owners complain about new power supply rate as price of rice rises amid fuel shortage

Yangon factory owners complain about new power supply rate

Factory owners in Yangon Region told DVB that the regime’s Ministry of Electric Power’s new option for a non-stop “24-hour” power supply at a rate of 900 MMK ($0.21 USD) per unit, which was introduced on Feb. 1, is “not cost-effective.” Under the regular electricity tariff, factory owners pay between 150-500 MMK ($0.03-0.11 USD) per unit but have experienced “frequent” power outages.

“We can’t use generators due to fuel shortages when the power is out. So, we have no choice but to pay the new rate,” an owner of a factory located in Hlaingthaya Township’s Industrial Zone told DVB on the condition of anonymity. He added that the regular electricity supply coming from the Yangon Electricity Supply Corporation provides power to industrial zones for 18 hours per day—from midnight to 5 p.m. the following day.

The ministry introduced nationwide “planned load shedding,” or rolling power cuts, starting March 18 until June. Pro-regime media reported that electricity will be distributed in two groups on a rotating four-hour schedule between 9 a.m. and 9 p.m. in Yangon Region. Burma consumes 4,664 megawatts of electricity per day but can generate only 3,600 MW—about 77 per cent of demand—according to the ministry.

Price of rice rises amid fuel shortage

Rice traders told DVB that the retail prices of one bag, approximately 50 kg, of premium rice increased from 160,000-190,000 MMK ($38-45 USD) and lower-grade rice varieties from 60,000-90,000 MMK ($14-21 USD) since the third week of March. They attributed the price hike to rising transportation and operation fees due to fuel shortages triggered by the war against Iran since Feb. 28.

Farmers told DVB that gasoline costs 10,000-15,000 MMK ($2.30-3.50 USD) on the black market to run harvesters as they can’t purchase enough fuel at the stations. Rice millers told DVB that mills operate on diesel with prices rising 5,450-5,680 MMK ($1.29-1.35 USD) per liter for regular and 6,085-6,805 MMK ($1.44-1.62 USD) for premium April 2-8, according to the regime-controlled Petroleum Products Regulatory Department.

It set prices for one litre of 92-octane gasoline at 4,625 MMK ($1.10 USD) and 95-octane gasoline at 4,780 MMK ($1.13 USD) on April 8. Edible oil traders also told DVB that palm oil cost as high as 17,000 MMK ($4 USD) in the retail market on March 31 although the regime-controlled Supervisory Committee on Edible Oil Import and Distribution under the Ministry of Commerce set the reference rate at 6,600 MMK ($1.5 USD) last month.