Thailand’s Supply Cut to Myanmar Border Areas Sparks Fuel Crisis in Myawaddy

A drastic cut in electricity and oil supplies from Thailand to five Myanmar border areas on 5 February has triggered a severe fuel shortage in the Myanmar border town of Myawaddy, driving petrol prices to unprecedented levels and forcing residents to cross into Thailand for relief. In the Thai border town of Mae Sot, roads have become congested with vehicles from Myawaddy seeking to refill their tanks, as fuel prices in the Myanmar town have soared to around 70 baht per litre for petrol and 71 baht per litre for diesel. The crisis highlights the deepening economic and humanitarian challenges in Myanmar’s border regions amid ongoing conflict and instability.

Fuel Shortages Grip Myawaddy

Since Thailand’s decision to halt electricity and oil supplies to the five border areas earlier this month, only a handful of large petrol stations in Myawaddy have remained operational, with severe restrictions on their hours. Reports indicate that these stations are now open for just one hour per day, creating long queues and pushing fuel prices to levels unaffordable for many local residents. The price surge—nearly double what is typical in the region—has compounded the economic hardship faced by communities already grappling with the fallout of Myanmar’s political turmoil since the military coup in 2021.

Myawaddy, located in Kayin (Karen) State and directly across the Moei River from Mae Sot in Thailand’s Tak province, is a critical trade and transit hub between the two countries. The town’s reliance on Thai supplies for essentials like fuel and electricity has made it particularly vulnerable to disruptions. The reasons behind Thailand’s supply cut remain unclear, though analysts suggest it could be linked to security concerns or bilateral tensions over border control amid Myanmar’s ongoing civil conflict between the military junta and various ethnic armed organisations.

Congestion and Desperation in Mae Sot

On the Thai side of the border, the impact of the fuel crisis is visibly evident. The main road in Mae Sot, a bustling border town, was reported to be heavily congested on the morning of 26 February, as vehicles from Myawaddy crossed the First Thai-Myanmar Friendship Bridge to refill at Thai petrol stations. Local social media, including the Facebook page Today in Mae Sot, captured images of long queues of vehicles, many bearing Myanmar license plates, waiting to access fuel at stations like a PTT outlet on the Moei River bank.

For many in Myawaddy, crossing into Thailand offers the only viable solution to secure fuel at a more reasonable price—around half of what is currently charged in Myanmar. However, this temporary fix comes with its own challenges, including long wait times, border crossing fees, and the risk of further restrictions if Thai authorities decide to tighten controls. A local resident’s post on Facebook described the scene at the PTT station as chaotic, underscoring the desperation felt by those affected by the shortage.

Economic and Political Underpinnings

The fuel crisis in Myawaddy is more than a logistical issue; it is a symptom of broader economic and political instability in Myanmar. Since the military seized power in February 2021, the country has been mired in conflict, with ethnic armed groups and resistance forces challenging the junta’s authority, particularly in border regions like Kayin State. Myawaddy itself has seen sporadic fighting, with control of the town and its lucrative border trade routes contested between the Myanmar military and the Karen National Union (KNU), alongside other allied forces.

Thailand’s decision to cut supplies may be tied to these security dynamics. The Thai government has long walked a delicate line in its relations with Myanmar, balancing economic interests—such as cross-border trade worth billions of baht annually—with concerns over refugee inflows and border skirmishes. Some analysts speculate that the supply cut could be a measure to pressure local authorities in Myawaddy or to limit resources reaching armed groups operating in the area. However, without official confirmation from Thai authorities, such theories remain speculative.

If the supply restrictions persist, the economic ripple effects could be significant. Myawaddy’s role as a trade gateway means that fuel shortages and price hikes could disrupt the transport of goods, impacting markets on both sides of the border. Small businesses, farmers, and transport operators in Myanmar are likely to bear the brunt of the crisis, with many unable to absorb the increased costs. In Thailand, meanwhile, the influx of vehicles seeking fuel could strain local resources in Mae Sot and heighten tensions over border management.

Humanitarian Concerns Amidst Instability

Beyond economics, the fuel crisis raises pressing humanitarian concerns. Myawaddy and surrounding areas are home to tens of thousands of displaced people who have fled violence in other parts of Myanmar. Access to fuel is critical for powering generators, transporting aid, and maintaining basic services in these communities. With electricity supplies also cut, reports suggest that many households and makeshift camps are struggling to meet daily needs, exacerbating an already dire situation.

International aid organisations operating in the border region have expressed alarm over the deteriorating conditions. While no official statements have been issued regarding this specific crisis, humanitarian workers have previously highlighted the challenges of delivering assistance in areas where infrastructure and supply chains are disrupted by conflict or policy decisions. If fuel shortages continue, the ability to provide food, medical care, and shelter to vulnerable populations could be severely hampered.

Regional Implications and Thai-Myanmar Relations

The unfolding situation in Myawaddy also casts a spotlight on the complex dynamics of Thai-Myanmar relations. Thailand has historically played a dual role as both a refuge for those fleeing Myanmar’s conflicts and a pragmatic partner to whichever authority holds power in Naypyidaw. However, the post-coup chaos has strained this relationship, with Thailand facing criticism for its perceived leniency toward the Myanmar junta while also grappling with the practical challenges of managing a porous 2,400-kilometre border.

The supply cut could signal a shift in Thailand’s approach, though it remains to be seen whether this is a temporary measure or part of a broader policy change. If intended as a form of leverage, it risks alienating local communities in Myanmar who rely on Thai goodwill, potentially fuelling resentment. Conversely, if the cut is driven by domestic security concerns, it underscores the difficulty of isolating border issues from Myanmar’s internal strife—a conflict that continues to spill over into neighbouring countries.

For now, the immediate focus for residents of Myawaddy is survival. The fuel crisis, while acute, is just one of many challenges facing a population caught between political upheaval, economic hardship, and regional power plays. As vehicles continue to stream across the Friendship Bridge in search of petrol, the border between Thailand and Myanmar stands as a stark reminder of how interconnected, yet divided, these two nations remain.

A Fragile Border in the Balance of Politics

As the situation develops, questions linger over how long Thailand will maintain its supply restrictions and whether diplomatic or economic pressures might prompt a reversal. For Myanmar’s border communities, the stakes are high. A prolonged crisis could deepen economic woes and push more people to seek refuge or resources in Thailand, testing the limits of cross-border cooperation.

In Mae Sot, local authorities and businesses are bracing for the possibility of sustained congestion and resource strain. Thai petrol stations, while benefiting from the influx of customers, may face supply challenges of their own if demand continues to outstrip capacity. Meanwhile, the broader implications for regional stability loom large, as any escalation in border tensions could have far-reaching consequences for trade, security, and humanitarian efforts.

The fuel crisis in Myawaddy is a microcosm of the broader challenges facing Myanmar and its neighbours. It underscores the fragility of border economies, the human cost of political decisions, and the urgent need for solutions that prioritise the wellbeing of those caught in the crossfire. For now, as vehicles queue along the Moei River, the people of Myawaddy and Mae Sot can only hope for a resolution that eases their burden—before the tanks run dry.