Myanmar backs EV-for-old-car swaps to cut fuel use and imports

Acting President and State Security and Peace Commission Chairman Senior General Min Aung Hlaing said the EV import system will be carried out through a system of replacing old fuel-powered vehicles with EVs.

He made the remarks in a speech at a meeting on the availability of sufficient fuel and fertilisers for the agricultural sector, held at the meeting hall of the National Defence and Security Council Chairman’s Office in Nay Pyi Taw on the afternoon of April 1.

The meeting was attended by Commission member Prime Minister U Nyo Saw, Commission member U Aung Lin Dwe, Commission Secretary General Commander-in-Chief of the Defence Services General Ye Win Oo, Union Minister for Home Affairs Lt Gen Phone Myat, Union Minister for Finance Dr Kan Zaw, Union Auditor General Dr Khin Naing Oo, and Central Bank Governor Daw Than Than Swe.

In his opening remarks, Senior General Min Aung Hlaing said that due to the current conflicts in the Middle East, the world is facing a shortage of fuel, and the country is also making efforts to overcome this difficulty. He said the government has recently implemented an odd-even licence plate driving system and QR codes for a vehicle and motorcycle fuelling system in order to reduce domestic fuel consumption. He added that government offices and departments have also been allowed to work from home every Wednesday, which has reduced fuel consumption as much as possible.

He said that as fuel prices rise, commodity prices may also increase in line with commodity flows. Therefore, the State is taking steps to ensure that diesel, which is mainly needed for public transportation, can be purchased at affordable prices. In order to prevent commodity prices from rising because of transportation, it is necessary to rely mainly on public transportation, such as railways, to transport goods, he said.

Senior General Min Aung Hlaing also said that with fuel prices rising during this period, the dollar price has also increased slightly. He said the increase in the dollar price is due to the higher cost of imported goods, including fuel, which has led to greater spending and caused the dollar price to rise. In order to prevent domestic goods prices from increasing, it is necessary to focus on low-income people and employees, he said.

He added that, in order to prevent further fuel price increases, it is necessary to consider reducing the taxes levied on imported fuel. When importing fuel, he said, priority should be given to diesel, which is mainly used in public transportation.

As the hot and dry summer has arrived, air conditioners are being used more and more, he said, while increased electricity use has also led to greater use of generators. In addition to the need to save electricity, it is also necessary to reduce the use of generators and vehicles. If fuel consumption can be reduced, foreign exchange expenditure can also be reduced, he said.

“To reduce fuel consumption, EV imports should be carried out through a system of replacing old fuel-powered vehicles with EVs,” he said.

He added that since rail transport reduces the cost of transporting goods, it is necessary to expand the number of freight trains. The relevant ministries, as well as regions and states, should take steps to ensure the rail transport system is widely used for goods, he said.

Turning to agriculture, he said the sector requires inputs such as water and fertilisers, as well as fuel for tractors and water pumps. Therefore, to reduce fuel consumption in pumping water, it is necessary to implement solar-powered water pumping projects. Due to the increase in fuel prices and fertiliser prices, it is necessary to reduce the use of fertilisers and use more natural fertilisers, he said.

“We can provide subsidies and reduce tax collection as much as possible to ensure that fertilisers, which are essential for the agricultural sector, reach farmers at affordable prices. We need to focus on ensuring food security for the people,” he said.

He also said that cooking oil needs to be imported from abroad every year, costing a large amount of foreign currency. It is therefore necessary to expand the cultivation of oilseeds such as sunflower, soybean and sesame, which are currently being grown in the country. If sunflower oil production can be improved, the need to import cooking oil from abroad can be reduced, along with the use of foreign currency, he said.

“We also need to distribute the necessary fertilisers to farmers at affordable prices. The state will do everything possible to meet the needs of the farmers, and the farmers will produce as much as possible,” he said.

The attendees then discussed the ongoing efforts to purchase fuel from foreign countries to solve the problem of domestic fuel shortages, the conditions for obtaining sufficient fuel for public transportation, such as railways, ships and buses, and the conditions for obtaining sufficient fertilisers for the agricultural sector.

Afterwards, Acting President Senior General Min Aung Hlaing discussed the necessary matters arising from the presentations and adjourned the meeting.

Eleven Myanmar