A severe diesel shortage has emerged in Mawlamyine due to the illegal smuggling of fuel to the Thai-Myanmar border towns of Myawaddy and Payathonzu, according to local residents and business owners.

Following Thailand’s crackdown on fraudulent online scam operations, including electricity and fuel supply restrictions to Myawaddy and Payathonzu, smuggling networks have been diverting diesel from Mawlamyine and Thaton. These operations reportedly supply fuel to online scam syndicates in the restricted border areas, a Mawlamyine-based business owner revealed.

“In Mawlamyine, some fuel stations are increasing diesel prices or withholding supply altogether. They can sell it to Myawaddy and Payathonzu for more than double the local price, so they prioritize smuggling over local sales. As a result, small and medium businesses here have been forced to shut down, and truck and car owners are also struggling,” said a local resident.

The official price of diesel in Mawlamyine remains around 3,500 kyats per liter, but some fuel stations are now selling it for as high as 5,500 kyats per liter due to the shortage.

The restrictions imposed by Thailand on February 5 were part of a broader crackdown on online scam syndicates operating along the border, especially after a Chinese actor was reportedly trafficked into one such operation earlier in January. The Thai government has cut electricity, internet, and fuel supplies to at least five locations along the border, including Myawaddy and Payathonzu.

While fuel shortages in Mawlamyine have occurred before—usually affecting gasoline due to logistical issues—this is the first time only diesel has run out, residents say. Most fuel stations still have ample gasoline, but diesel sales are now strictly limited, with long queues forming as soon as small amounts become available.

Previously, only private car owners lined up at Mawlamyine’s fuel stations, but now large transport trucks are also waiting in hopes of securing diesel, worsening the crisis.