Fuel shortage hits Shan State as imports from Thailand halt over Iran conflict

Amid escalating conflict in the Middle East, concerns over potential disruptions to global energy supplies have prompted Thailand to suspend fuel exports to its neighbours, triggering shortages in parts of Myanmar, according to sources. Thailand has restricted access to fuel, electricity, and internet services in many border areas since early last year due to concerns over scam centres. However, parts of eastern Shan State, including Tachileik and Kengtung, were still able to purchase Thai fuel via Laos until this week. Since Monday, all exports have come to a complete halt, forcing residents to scramble for the remaining supplies, a source involved in fuel imports told Myanmar Now. “Our primary source of fuel is Thailand. As of this morning, exports have stopped and no new fuel is arriving. Because there was no prior warning, most fuel shops have very little left, leaving people shocked as they rush to stock up,” the source said on Monday. Motorcycles and cars crowded roads outside gas stations in Tachileik, prompting traffic police to order some stations to close and others to operate on a rotating basis, he added. Most residents of eastern Shan State rely on fuel from Thailand due to the high cost of transporting supplies from central Myanmar. If the suspension continues, however, they may be forced to source fuel domestically despite the higher expense. According to the source, current supplies are expected to last no more than 10 days if no new shipments arrive. In another border town, Myawaddy in Karen (Kayin) State, residents have relied on domestic fuel supplies since February 2025, when Thailand halted shipments in an effort to deprive scam centres of operational resources. Since then, locals say new and more reliable supply chains have been established. However, disruptions in the global energy market caused by the joint US-Israel war on Iran, which began on February 28, are likely to have a significant impact on Myanmar. The country imports millions of barrels of oil each year, most of it from Iran, other Middle Eastern countries, and junta ally Russia. Following the initial attacks on Iran over the weekend, global oil prices surged by 10 to 13 percent in various markets, according to international media reports. A major concern is Iran’s warning regarding the Strait of Hormuz, the strategic waterway linking the Persian Gulf and the Indian Ocean. The strait carries roughly one-fifth of the world’s oil supply, along with substantial volumes of liquefied natural gas. “The situation largely depends on the conflict between Iran, Israel, and the US. Thailand has calculated that its current fuel supplies will last around two months, after which shortages could become severe. Everything depends on how the war unfolds,” said Banya Khung Aung, Secretary-2 of the Karenni State Interim Executive Council, which administers resistance-held areas in Karenni State. “Even now, we are already dealing with high prices and frequent fuel shortages,” he added, noting that some parts of the state continue to receive limited supplies from Thailand. Since seizing power five years ago, Myanmar’s junta has prioritised fuel oil imports due to foreign currency constraints. Nevertheless, frequent shortages have persisted as supplies have remained inadequate.

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