Wednesday, January 4, 2012

Gas prices shoot up 30 percent


Wednesday, 04 January 2012 15:15 Mizzima News

(Mizzima) – Gasoline prices skyrocketed in Burma more than 30 percent over New Year’s, sparking fears of an inflationary spiral in costs. The government made no public announcement.

Motorists were surprised to see the new prices on the pumps reflecting an increase from 2,500 kyat (US$ 3.15) to 3,350 kyat ($4.2) per Imperial gallon (4.5 liters). Prices of compressed natural gas (CNG) and diesel were unchanged.

The fuel price hike follows a new 40 percent electricity cost increase announced late last year. Burma’s energy production is not enough to meet domestic demand for petrol and other fuels. Gas prices are legally rationed to two Imperial gallons (9 liters) a day.

An unannounced price hike in 2007 sparked anti-government protests that led to the "Saffron Rebellion." The military government then in power crushed it, leaving at least 15 dead and thousands arrested.

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