- Analysis of Energy Insufficiency in Mon State
The fuel shortages and energy crisis occurring in Mon State during April 2026 are not only hindering regional economic development but are also severely threatening the daily lives of the grassroots people. Along with global oil price instability, a combination of domestic policy management weaknesses and foreign exchange rate crises has made Mon State the region with the highest fuel prices in the entire country. In particular, the impacts on small and medium enterprises, the rising cost of basic living, the increasing prices of purified drinking water, and the damage to agricultural businesses are becoming the main challenges.
1.1 Situation of People Using the National Grid
- Despite the military coup government’s announcement that electricity supply would be increased starting April 22 to address the domestic energy crisis alongside rising global crude oil prices[1], electricity outages on the ground have actually worsened. In townships within Mon State that use the National Grid, electricity is only available for a few hours a day, and in some areas, continuous multi-day blackouts are occurring.
(a) Impact on Small and Medium Enterprises (MSMEs)
- According to residents in Thanbyuzayat Township, electricity was only consistent during the Thingyan period; afterward, the system shifted to providing temporary power for only about one hour after midnight (1:00 AM) when people were asleep. Due to this systematic lack of power distribution, MSMEs such as small-scale trade and transportation, hair salons, bakeries, and furniture businesses—which rely entirely on electricity and fuel—are facing costs that exceed profits. Because of difficulties in obtaining fuel[2], many businesses have had to temporarily shut down, demonstrating that “the people cannot rely on the coup military government” during this energy crisis. This situation not only affects business owners but also directly stops the income flow for the families of basic laborers who depend on these businesses, impacting their daily livelihood and healthcare expenses.
(b) Suffering from Severe Summer Heat due to the Urban Energy Crisis
- During the extremely hot April of 2026, urban populations and dormitory renters in major cities like Mawlamyine are suffering from the effects of electricity blackouts. Due to long-duration daytime outages and the inability to predict when power will return, it has become difficult even to pump water in high-rise buildings. Because there is no alternative energy provided by the government to combat the hot weather, those who can afford it are installing solar panels and generators to solve the problem themselves. On the other hand, since most of the income of the working class is spent primarily on rising food costs, they have no surplus funds to purchase electric fans or solar systems to protect against the heat. This process directly threatens the urban lifestyle that depends entirely on electricity and creates a burden on the daily health and social security of the people.
(1.2) Private Electricity Sector and Record High Electricity Rates
In Ye Township, there are no fewer than four independent electricity businesses, including major electricity companies such as SMD Company and Myat Thura Htun Company, which distribute electricity to villages in Ye Township. These businesses rely on fuel imported from abroad to operate, and it is transported by fuel tankers from the Dawei Port/Mudon Port oil storage tanks. It is known that there are difficulties in generating electricity due to the current difficulties in obtaining fuel.
| No. | Company / Business | Location | Price per Unit (Kyat) |
| 1 | Self-Reliant Businesses | Ye Township (West) | 8,000 |
| 2 | Kalort (Self-Reliant Businesses) | Ye Township (South) | 7,600 |
| 3 | Kyaung Ywa (Self-Reliant Businesses) | Ye Township (South) | 6,500 |
| 4 | Myat Thura Tun Company | Ye Township (South) | 3,800 |
| 5 | SMD | Ye (North) | 3,800 |
Electricity meter price list in Mon State (April 2026)[3]
(a) Decline of Electricity Services in Rural Areas
- Currently, private and self-reliant electricity businesses in various rural areas[4] are significantly reducing power distribution hours, citing difficulties in purchasing fuel. These operators have begun raising meter rates without prior notice and restricting electricity supply hours at their own discretion. In some regions, due to fuel hardships, they have announced that regular distribution is no longer possible and will instead be provided temporarily on a “part-time basis.” Due to this uncertainty of electricity availability and the short duration of supply, the daily social activities, cottage industries, and children’s education of rural residents are facing major obstacles.
- When observing the current electricity crisis, it is evident that those who can afford it are switching in large numbers to off-grid solar systems. While this trend may lead to a decrease in consumers for private electricity companies in the long run, the working class—who cannot afford the initial investment—remain trapped between unstable government electricity and high-priced private meter rates. Consequently, the problem of energy insufficiency will continue to remain deeply rooted.
(b) Impacts on the Agricultural Sector
- Due to electricity outages, locals are relying on private generators to operate; however, they are facing further challenges in purchasing fuel. In particular, summer paddy and perennial crop (durian, betel nut) farmers are no longer able to provide sufficient water to their plantations and are experiencing the drying out and destruction of their plants.[5]In the long term, this phenomenon will decrease regional crop yields and lead to “Food Price-Inflation.” These energy crises not only affect plantation work and other manufacturing but also directly impact the growth rate of the normally functioning local economy.
- c) Rising Prices Across the Basic Commodity Supply Chain
- Starting from April 2026, fuel prices in Mon State surged by more than double—from around 18,000 Kyats to over 40,000 Kyats per gallon[6]—which, combined with irregular electricity supply, has directly impacted the basic food and drinking water sectors. The price of drinking water rose by approximately 33 percent (up to 2,000 Kyats),[7]while private electricity rates reached a record high of 8,000 Kyats per unit.[8] This exorbitant rise in commodity prices is due to a chain of interconnected crises: the reliance on expensive fuel-powered generators because government electricity is unavailable, the doubling of costs for the flow of goods and distribution, and the need to increase labor wages due to general inflation.
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- This phenomenon creates a significant socio-economic burden for urban residents who rely primarily on “purified drinking water as an essential commodity,” particularly for grassroots families. The rise in drinking water prices not only shrinks family expenditures on nutrition and health but also creates an imbalance between income and expenses for daily survival. Furthermore, lower-income classes who cannot afford high-priced water may turn to unsafe water sources, which can increase the risk of waterborne diseases during the intensely hot summer months.
(d) Impact on Internally Displaced Persons (IDPs)
- It has been observed that transportation has become more difficult due to fuel shortages, and for IDPs who are unable to return home, “provisions of medicine and food rations have significantly decreased.”[9]Consequently, the working class is facing the “risk of malnutrition,” and it is analyzed that the current energy shortage is not merely an economic problem, but has reached a stage where it threatens the health and humanitarian security of the people.
(1.3) Did the Military Junta’s Energy Policies Resolve the Problem?
The military junta implemented fuel-saving measures, starting March 7 with a vehicle rotation system where “even-numbered plates buy on even days and odd-numbered plates buy on odd days.” On April 22, they introduced a new policy selling fuel via a QR Code system, limiting the number of liters allowed per week based on vehicle type.[10] However, elderly and working-class buyers faced difficulties using digital systems, and since internet quality has declined following the coup, purchasing fuel became a significant challenge. After some shop owners conducted sales based on mutual understanding, the Military Commission temporarily shut down four filling stations in Mon State for allegedly selling fuel without scanning Bar Codes/QR Codes.[11]
Findings indicate that these restrictions are merely internal management failures. This is because they represent an attempt to use orders to control sales distribution without being able to solve the supply shortage. The root cause of wanting such control is to save depleted foreign currency and forcibly limit the use of Dollars for fuel imports. However, because they are only controlling the “sales side” without addressing the source of the problem—foreign currency flow and market freedom—it can be concluded that these policies are only short-term deterrents and are completely non-viable economically.
Conclusion
In summary, the long-term consequences of Mon State’s current energy and economic crisis are analyzed through the following three perspectives:
- Firstly, if transparent and effective reforms in the energy service sector continue to be delayed, it points toward a risk of the entire regional production supply chain collapsing. In the future, coupled with a lack of trust in government electricity and the ongoing burden of rising fuel prices, regional Micro, Small, and Medium Enterprises (MSMEs) may face adverse effects ranging from temporary to permanent closure. This reflects a likely negative impact on local employment opportunities and is pushing the population toward illegal overseas migration.
- Secondly, the “soaring commodity prices” faced by the agricultural and food sectors will significantly reduce regional crop yields in the long term, adversely affecting food security. As a consequence of farmers being unable to properly maintain their plantations due to fuel costs, the quality and quantity of crops will decline in coming seasons; this will impact not only domestic consumption but also the export sector, hurting the flow of rural income.
- Thirdly, the exorbitant prices of basic food and drinking water are forcing the working class to opt for unsanitary sources, which suggests a likelihood that public health and nutritional conditions will worsen in the long run.
In summary, the current energy shortages and policy failures are continuously creating negative impacts across various socio-economic sectors in the region. Regarding the stability and long-term development of the entire society, it can be viewed that the current military junta is either deliberately causing hardship for the people or restricting the market for the self-interest of a particular group. Under these various circumstances, RICE concludes that there is an urgent need to strengthen social security networks for the grassroots and to find sustainable solutions for energy security.
[1] “Electricity was reliably available only during the Thingyan period and subsequently provided temporarily for about an hour – according to local news sources accessible from RICE.”
[2] Independent Mon News Agency, April 5, 2026, “Mon State Fuel: Sold for One Hour, Wait All Night”, Link
[3] Electric meter price schedule within Mon State (April 2026) – From RICE’s accessible local news sources.
[4] Independent Mon News Agency, April 8, 2026. Without prior notice, electricity prices increased for self-reliant electricity businesses in Ye Township.Link
[5] “On March 31, 2026, the Independent Mon News Agency reported, “Farmers in Paung Township are lining up to buy fuel for their water pumps”. Link
[6] Independent Mon News Agency, April 2, 2026. Fuel shortages make it difficult to help war refugees.Link
[7] Dawei Watch, April 3, 2026: Drinking water prices rise in Mon State due to fuel shortages.Link
[8] In Mon villages in the lower part of Ye Township, electricity is distributed through a self-reliance system, so the meter charge of 1 unit is collected according to the current market price of 1 liter of fuel oil. (Source- RICE)
[9] Independent Mon News Agency, April 2, 2026, Difficulty in providing assistance to war refugees due to fuel scarcity.Link
[10] Than Lwin Times, April 22, 2026, Mon State Begins Selling Fuel with QR Code SystemLink
[11] Independent Mon News Agency, April 1, 2026. Four petrol stations in Mon State have been temporarily closed.Link
