As a fuel crisis unfolds in Karenni State due to a junta-imposed blockade and escalating tensions between the regime and resistance forces, local revolutionary leaders have warned against market manipulation and price gouging.
Karenni Nationalities Defence Force (KNDF) deputy commander-in-chief Maui warned business owners against price gouging, saying the group would take necessary action if local people are seriously affected. KNDF adjutant-general Khu Reedu also stated that the Karenni State Interim Executive Council would address the fuel shortage and price hikes.
Fuel price has nearly tripled to around 10,000 kyat per liter in Karenni State, and fuel is completely out of stock in certain areas, according to locals and volunteers helping internally displaced people.
“I haven’t been able to buy fuel for the last two days because the routes are blocked. All the filling stations are closed,” said a woman from western Demoso Township.
Normally, fuel is transported into Karenni State through Pekon on the Shan border, but the regime has been conducting offensives in the area, blocking the key supply route. Meanwhile, other routes through forests are inaccessible due to heavy rainfall. Another route through Bago’s Taungoo is also inaccessible due to ongoing fighting in areas claimed by Karen National Union Brigade 2, according to a volunteer helping IDPs.
“The price of a barrel of fuel now exceeds 1.4 million kyat. Even then, no one is willing to sell. The shortage comes as people are being forced to flee their homes [due to the fighting]. People are being injured by drone and artillery strikes, and without fuel, it is difficult for them to receive medical treatment in time,” he said.
In Loikaw, the capital of Karenni State, which is still controlled by the regime, fuel prices remain the same at around 4,000 kyat per liter, as the city has access to fuel from junta-controlled Hsihseng Township in Shan State. The regime has sealed off the city to make sure fuel does not reach resistance-held areas including Demoso, Hpruso, Shadaw, Bawlakhe, and Hpasawng.
“The military controls all fuel suppliers and filling stations in the city. They have set up checkpoints at the entry and exit points of the city and are detaining anyone trying to leave the city with more than a few barrels of fuel,” said a Loikaw resident.

The regime has also sought help from Thai authorities to prevent fuel from crossing the border into Myanmar, said another resident close to the regime.
“The Thai side has blocked the border. Thai border guards are not allowing any fuel to come through.”
The regime has also sought cooperation from the Thai government to crack down on all illegal border trade, he said. Lead produced from Karenni State is being sold through the Thai border to Chinese buyers, and the regime has sought help from the Thai government to halt this trade, he said.
“I heard that the military attaché of the regime has talked with his Thai counterpart to confiscate anything that does not go through the official channel.”
The ongoing fuel shortage poses a grave threat to the health and well-being of the local population, particularly in areas under the control of resistance forces. As the fighting intensifies, hospitals and clinics are facing severe challenges in providing care due to the lack of fuel to power essential medical equipment.
Conflict zones are prone to shortages of essential supplies and price hikes due to the junta’s blockades, said Secretary 2 Banyar Khun Aung of the Karenni State Interim Executive Council. The council is taking steps to address the shortages, he said, but declined to go into detail.
Military observers estimate that resistance forces control around 70 percent of Karenni State.