Talk of CNG price hike could prove true

Talk of CNG price hike could prove true

By Aye Nyein Win   |   Monday, 08 July 2013

A Ministry of Energy spokesperson says rumours and reports of a possible change in the price of compressed natural gas, which is set by the ministry, could prove to be true.

A taxi driver waits in line at a compressed natural gas station in Yangon. (Aung Htay Hlaing/The Myanmar Times)

"Nothing has been changed but we don't know how it will be changed in future," said U Ko Lay, from Myanma Oil and Gas Enterprise's CNG Department.

The rumours were fuelled by a June 24 report in the state-run Kyemon (Mirror) newspaper that stated CNG prices would be raised but did not give the new price. The report also advised people to write a letter to the ministry stating whether they believed pricing should be changed and also asked people to state whether they thought gasoline and diesel prices needed to be increased.

The story sparked an immediate response from worried cab drivers, who fear that they will no longer be able to make money if prices rise.

"I heard that the CNG price would double," said taxi driver Ko Min Wai. "There are already a lot of taxis on the road and we struggle to cover our costs. If the CNG price doubles, we will find it hard to keep going.

"There are not many CNG filling stations, unlike gasoline and diesel stations. And it's hard to find a shop that will fill the tank fully," he said. "If the price increases, it would be better if we could at least fill up every time because otherwise we have to waste our time."

Bus owner Ko Latt said that when the electricity was cut during filling, the stations used generators to power the pumps. However, in those conditions the pumps did not work to full power and could not always fill tanks. Ko Latt added that vehicles with large tanks also depleted the pressure of the pumps, meaning vehicles that came afterward were denied enough pressure to fill their tanks.

"I heard the CNG price will increase, but I have not seen any official announcement," he said.

"Some people say the CNG price will increase to K900 for 1 kilogram, up from K273. But I heard that vehicles used for public transport will not be included in the increase. If that's not the case and we have to pay more, then bus fares will increase too."

He suggested that the Mirror's story might have been an attempt by the ministry to gauge public opinion to a possible increase.

"If people accept this, they [the ministry] will carry it out, but if people complain about a possible increase, maybe it will not happen."

By July 4, the CNG price was unchanged at about K273 a kilogram.

U Ko Lay said the ministry has already accepted letters from the public as a result of the Kyemon article but would not say whether the majority advocated a price rise.

"The ministry has to sell CNG at an appropriate price but we don't know what that will be," he added.

"It is hard to say what the exact CNG price is," said taxi driver Ko Min Min. "It's supposed to cost K273 for 1kg but we always pay K300. If prices are increased, then the owners must compromise on daily fees."

CNG-fuelled taxis are much cheaper to run than gasoline- or diesel-fuelled vehicles but owners also charge more to rent them by the day – about K15,000 compared to K10,000 for a diesel or gasoline car.

The Mirror reported that there are more than 27,450 CNG-fuelled vehicles in Myanmar and 45 CNG filling stations.

Source: http://www.news.myanmaronlinecentre.com/2013/07/09/talk-of-cng-price-hike-could-prove-true/