India’s export curbs raise fuel supply concerns in Arakan State

India’s export curbs raise fuel supply concerns in Arakan State

Traders operating along Arakan (Rakhine) State’s border with India’s Mizoram State have reported that the Mizoram government recently imposed restrictions on cross-border fuel exports.

In the third week of March, authorities in Lawngtlai, Siaha, and Lunglei abruptly banned all fuel exports across the border. The directives cited concerns over potential fuel shortages linked to conflicts in the Middle East and aimed to stabilize fuel prices within Mizoram.

“Fuel is extremely hard to find in Lawngtlai District. Petrol and diesel are so scarce that sometimes you can’t find them at all. We now have to travel to Lunglei District just to buy fuel, and even then, we can only get it through brokers. To pass the checkpoints with fuel, we have to show authorized transit documents,” said an Arakan trader currently in Aizawl, Mizoram.

Traders also reported that soaring transportation costs are adding to their difficulties. While some fuel still enters Arakan State from the Indian border, market prices are gradually rising due to these higher transport expenses.

“In the past, we paid 2,000 rupees per vehicle to cross a checkpoint. Now it’s 10,000 rupees per vehicle. And we can’t buy fuel ourselves anymore. We have to go through intermediaries who handle all the paperwork and navigate the checkpoints. It’s much more complicated than before,” said a female fuel trader from Arakan State.

Currently, Octane 92 in Arakan State sells for 9,000–10,000 MMK per liter, while fuel imported from India costs around 8,000 MMK per liter. Residents fear that India’s restrictions could lead to severe shortages and further price hikes.

“I expect travel costs to rise sharply. A trip that used to cost 30,000 MMK might now be around 50,000 MMK. This makes it much harder for people who travel for work. If transportation costs keep increasing, the prices of basic goods will likely follow,” said a resident of Myebon.

For Arakan State, already affected by the coup regime’s strict blockades, restrictions on fuel imports through the Indian border—a key supply route—could pose serious challenges. Business owners warn that the resulting scarcity may drive up transportation costs, which would directly push essential commodity prices higher. 

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