In Hpa-An, the capital of Karen State, stricter fuel purchase controls and black market prices—now three times the official rate—have forced many passenger transport services and vehicle-based mobile shops to close, locals reported.
The junta-controlled state government ordered fuel stations to sell fuel only to cars and motorbikes that can provide proof of tax payment and government registration, known as wheel tax. The official price of petrol is around 5,000 MMK per liter, while on the black market it can rise as high as 15,000 MMK.
As a result, vehicles operating without tax compliance find it increasingly difficult to function. With soaring black market fuel prices, motorcycle and tricycle taxis, as well as car-based mobile shops, have suspended operations.
“My motorcycle taxi isn’t registered for wheel tax, so I can only buy fuel on the black market. With today’s fuel prices, it’s no longer economically viable. Passengers can’t afford the rising taxi fares, so they’ve stopped taking taxis. In the end, my business has come to a halt, with no other option left,” said a resident of Taungkalay Village, near Hpa-An City.
Mobile shops that used to bring meat, fish, vegetables, and other goods from rural areas into the city and sell them directly from vehicles have also suspended operations. The business was once popular in Hpa-An because it allowed customers to choose and buy goods right at their doorsteps.
The same fuel purchase regulations implemented in Hpa-An have also been introduced in Myawaddy, a border town with Thailand. As a result, vehicles without wheel tax must purchase fuel in Mae Sot on the Thai side at higher prices. This has also kept bus fares between Hpa-An and Myawaddy elevated.
“In Myawaddy as well, vehicles without wheel tax have to buy fuel from Thailand at around 13,000 to 15,000 MMK per liter. With fuel prices this high, bus fares between Hpa-An and Myawaddy have also risen to about 100,000 to 130,000 MMK,” a business owner in the town said.
The rising fuel prices have not only pushed up ticket fares on the Myawaddy–Hpa-An route, but have also increased freight charges to Yangon and Mawlamyine, the capital of Mon State.
To make matters worse, junta checkpoints along the route have also confiscated goods brought in from the Thai side, causing losses for some cargo transport businesses and forcing others to shut down completely, according to businesses based in Mae Sot.
Asian Highway 1 (AH1), a key route for border trade with Thailand that connects to Myawaddy, was previously closed due to fighting but reopened in April after the junta regained full control of the area.
On AH1, the junta is collecting tolls from all vehicles except small private personal vehicles, according to locals.
