No CNG price hike, ministry insists
By Aye Nyein Win | Monday, 02 June 2014The Ministry of Energy says there will be no price rise for compressed natural gas (CNG) for at least three months, appearing to contradict state media claims that a price rise in imminent.
A worker fills up the tank on a CNG vehicle. Photo: Staff
Taxi drivers are particularly vocal in their opposition to the increase, it would both be passed on to riders and squeeze profit margins.
Such a move cannot happen quickly, said U Hla Win Htay, general manager of the CNG department of the Myanmar Oil and Gas Enterprise (MOGE) under the Ministry of Energy.
"We can change the price if parliament confirms, but I can't say in advance it will change," he said. "But I can say the CNG price will not change within three months."
The latest round of price rise fears came after a report in a government newspaper The Mirror suggesting an increase was being considered from June 24th in line with similar market-based price increases for petrol and diesel. Unlike petrol and diesel, CNG prices are set by the MOGE.
In June 2013 the ministry denied there would be a price increase, however in August 2013 it posted a notice on its website confirming that a price rise was being discussed, though no increase materialised.
"I had heard the CNG price will change at the end of this month, and I'm worried about it," said one taxi driver in Yangon.
Currently the price of CNP is K273.25 per pound, making it significantly cheaper than other fuels such as petrol or diesel.
Myanmar has been a leading natural gas producer, but the government has previously said that the reserves are decreasing.
''The ministry said they are still collecting the data [about a possible price decrease]. But I think they spread rumours among the people and if the people don't complain, they will change the price. But most people can't accept this. So the ministry waits," said taxi driver Ko Aung Tin Htut.
According to the Mirror's report some people had petitioned the Ministry of Energy with a letter recommending the CNG price rise in line with petrol and diesel.
"I had heard CNG prices will double. At present, there are many taxis on the road. So we will have little chance to exist, given our family household expenses," said taxi driver Ko Wai Linn.
Source: http://www.news.myanmaronlinecentre.com/2014/06/04/no-cng-price-hike-ministry-insists/
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