The price of gas on Burma's black market has been fluctuating since April 24, the day that private gas stations began limiting customers to two gallons per customer per day. The price of gasoline was under 5,000 kyat (US $6) before the gas stations put the two gallon limit in place. The price then rose to 5,600 kyat ($6.7) before dropping back in 5,000 kyat range and continues to be unstable, according to sources selling gas on the black market. Taxi drivers in Rangoon said that the system of limiting the amount of gasoline customers can purchase at stations was used by the military regime before privatization of gas stations and the convening of the new government. The new government is now trying to restart the old system, the drivers said. According to a Rangoon gas station employee, hundreds of cars line up every day for gas. The Fuel Oil Importers and Distributors Association (FOIDA), which was formed on January 23, 2010 with Burmese tycoon Tay Za as the chairman, instructed stations to reduce the long lines by selling 6 gallons per car for a three days limit. The owner can line up again after three days and purchase more gas. “We sell by the instructions of the officials. All Gas stations must sell 2 gallons per car, but if they want they can buy 6 gallons for three days in advance. Now we can reduce the number of cars lined up,” an employee at Shwe Zinyaw gas station in Hlaing Township, Rangoon told The Irrawaddy. The intention of limiting the amount of gas sold is to dry up the black market, but there is still widespread selling of gas without recording the sale. A local taxi driver told The Irrawaddy that, “There are some groups which have a good relationship with the staff at gas stations. They have expanded their gas tanks in order to get more gallons of gas. The employees sell the gas without recording the sale and they share the benefits with those people after they re-sell it on the black market. Almost all of the staff at every gas station has their own groups to deliver gasoline.” The limitation on the amount of gasoline that can be purchased is causing problems for consumers. “Every taxi that runs on gasoline is facing trouble. Two gallons isn’t enough for a day and the price on the black market is very expensive. The octane gas is also over 4,000 kyat ($4.7) per gallon, which is not very different from the price of gas on the black market. Taxis that use CNG (Compressed Natural Gas) are better than the other kinds of taxis. Their fuel costs only 2,000 kyat ($2.3) per tank. They can drive their passengers for a cheaper price.” A Burmese economic analyst said that the limitation on selling gas is not appropriate for the country’s economy and market. “Selling gas by limitation with an official price is not a guideline of the economy. The government should promote the market and they have to sell based on demand. The government should allow the car owners who can’t afford gas to change their gas-engine to a CNG-engine. It will solve the problem of gas and the black market of gas as well. As for the CNG, we have our own CNG. No need to import from the other countries.” Twenty private companies which are close to the military-owned Union of Myanmar Economic Holding Limited took over 240 gas stations from the Ministry of Energy on June 10, 2010.

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