Kaladan News

Dated: Sunday, January 16, 2005

Price Hike of Kerosene, Petrol This Year in Arakan State

Buthidaung, January 16: The kerosene and petrol prices are increased in Arakan State, Burma, at the beginning of this year hamper mostly farmers, sources said.

Now kerosene is being sold at Kyat 2,600/- per gallon whilst it has been sold at Kyat 2,200/- in previous month. Petrol is also being sold at Kyat 2,100/- while it has been sold at Kyat 2, 000/-at the end of 2004, said a trader who has a shop of selling kerosene and petrol.

The price hike greatly affect farmers as they largely depend on kerosene and petrol for irrigation and other purposes. It also increase transport costs and food prices leading to higher inflation, he further added quoting intellectuals.

Economists believe that the price hike will have a serious negative impact on the economy and the poor, he more added.

Rural people consume most of the kerosene and petrol. Both these products are used largely in the agriculture and transport sectors and constitute a major cost factor in food production and transportation, said an intellectual referring not to write his name.

Burma is already facing a high inflation rate. Economists fear a petrol and kerosene price hike will further increase the inflation rate, the intellectual more added.

An expert in economics said, “It will also add to inflation. In such a context, the increase of kerosene and petrol prices, the cost of transportation and irrigation will increase. Most of the people in Arakan State are dependent on kerosene and petrol. So, the price hike will affect the farmers seriously.”##

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