Myanmar Rice Farmers Battle Fuel Shortages as Iran Crisis Drives Up Diesel Costs

Rice farmers in Myanmar are facing severe diesel shortages and soaring fuel prices due to the Iran conflict disrupting global oil supplies. Farmers are waiting in long lines overnight and paying black market prices up to three times higher just to fuel their tractors for critical harvests.

Rice farmer Win Zaw and four family members ride motorcycles through the night from their village in Myanmar’s Irrawaddy delta, searching fuel stations for precious diesel to power his farming equipment.

“Some even sleep there overnight,” the farmer explained, describing how buyers line up on motorcycles and tractors starting at 3 a.m. “This is a total waste of manpower and time.”

Myanmar’s struggling economy, already devastated by five years of civil conflict following a 2021 military takeover, faces another crisis as the Iran situation has pushed global oil prices higher and created severe domestic fuel shortages.

Diesel prices at the pump reached 3,800 kyat ($1.80) per liter by mid-March, jumping from 2,450 kyat ($1.16) just one month earlier in February.

The shortage has driven farmers like Moe Win to illegal fuel markets, where diesel costs approximately 12,000 kyat ($5.71) per liter – a price he’s willing to pay to protect his rice harvest.

“Occasionally, after queuing in town for two days, we’ve had instances where we could only buy five or six litres,” the delta farmer said.

“But if we don’t harvest the paddy in time, the crops will be destroyed, so we have to bear any cost.”

Military leadership spokesman did not return phone calls seeking comment, though junta leader Min Aung Hlaing announced at a meeting this week that officials are addressing the fuel crisis, according to state media reports Wednesday.

GLOBAL HUNGER CRISIS

Myanmar ranks as the world’s fifth most food-insecure nation, where 12.4 million people – roughly 25% of the population – face daily hunger, according to the United Nations World Food Programme.

“Rising fertiliser costs and restricted fuel access for machinery threaten the upcoming cultivation season,” said Michael Dunford, the organization’s Myanmar director. “Production costs are expected to double if instability continues.”

Farmers are now preparing for the crucial monsoon rice-growing season following the completion of dry-season harvests, he noted.

Iran has emerged as Myanmar’s main source of urea fertilizer over the past three years, with yearly imports between 400,000 and 600,000 tons, some of which military forces reportedly convert into explosives.

The World Food Programme issued a warning this month that worldwide hunger could reach unprecedented levels, potentially pushing another 45 million people into severe food insecurity, as U.S.-Israeli military actions against Iran since February 28 have increased food, fuel, and shipping expenses.

Myanmar requires immediate assistance to prevent an almost inevitable decline in agricultural production and substantial harvest losses, according to Maximo Torero, chief economist for the UN’s Food and Agriculture Organization.

“A poor harvest would reduce supply, driving prices even higher and putting basic staples out of reach for millions who have lost their jobs and livelihoods.”

‘FIGHTING FOR FUEL’

Expecting fuel shortages after the conflict began, Myanmar’s military government implemented comprehensive vehicle rationing in early March, using QR code technology to prevent multiple daily refueling attempts.

However, this system has created enormous traffic jams at service stations, leaving many drivers with only a small portion of their fuel needs despite waiting for hours.

Airlines operating within the country, running short on jet fuel previously imported from Iran, have cancelled flight routes and imposed strict baggage restrictions, with remaining ticket prices increasing threefold.

Myanmar relies on regional Middle Eastern crude oil processing centers, including Singapore and Malaysia, for diesel imports essential to its weakened economy and agricultural sector.

To decrease fuel consumption, the military government has mandated that government workers stay home every Wednesday, while announcing Monday that current reserves will last approximately 50 days.

Nevertheless, three farmers from different areas across the country reported difficulties obtaining fuel before a crucial harvest period.

After depending on mechanized equipment for years, immediately returning to animal-powered farming was not feasible, they explained.

“Nowadays, we are practically waging a war just to get some fuel,” said Irrawaddy delta farmer Win Zaw.