Iran crisis sparks fuel price hikes in AA-held areas

By Admin 05 Mar 2026

DMG Newsroom

5 March 2026, Kyauktaw

Fuel prices are surging in Arakan Army (AA) controlled areas of Arakan State as residents engage in panic buying following global market fluctuations triggered by the ongoing Iran crisis, local fuel retailers report.

On March 4, the price of a barrel of fuel stood at approximately K1.3 million. By today, market prices have jumped to between K1.4 million and K1.5 million. While there is no immediate shortage, retailers warn that prices are likely to continue rising.

"Current prices are K7,500 per liter for 92 Octane and K6,500 per liter for Indian fuel. Although 92 Octane prices briefly dipped, the next shipment is expected to cost K1.4 million per barrel, so prices will inevitably rise again. Indian fuel is also becoming scarce at the source, so further hikes are expected," said a male fuel station owner in Kyauktaw.

The Middle East conflict involving Iran, Israel, and the United States is now affecting areas under Arakan Army administration. Since fuel is largely imported via India, regional instability has sent shockwaves through local supply chains.

"Because commodity prices are already high here, most people, about 90 out of 100 customers, choose the cheaper Indian fuel over 92 Octane. With the Iran war driving up global oil costs, we have to monitor the situation closely, but the trend is definitely upward," said a female fuel station owner.

Residents recall previous fuel shortages caused by transport blockades during past battles for control of towns in Arakan State.

"We went through fuel shortages when the fighting first broke out. If prices keep rising, we might have to go back to using bicycles like we did then," noted a young resident of Kyauktaw.

Locals remain concerned that continued price hikes could eventually deplete supplies. Meanwhile, the fuel crisis triggered by the Iran conflict is being felt across Myanmar, with long queues reported in major cities including Yangon and Mandalay.

Tensions have intensified following reports that Iranian authorities have closed the Strait of Hormuz, the world’s most vital oil transit point, through which approximately 20% of global daily oil consumption passes.