U Nyi Nyi Htwe, owner and managing director of Yarzar Min Company, a licensed fuel importer in Mon State, has been sentenced to two years in prison and fined K500,000 by the Mawlamyine Township Court under Section 5 of the Essential Supplies and Services Act, according to sources close to the court.
The case stemmed from an investigation alleging that the company illegally diverted imported fuel intended for distribution in Mon State to Kyainseikgyi Township in Kayin State while Mon State was experiencing fuel shortages. U Nyi Nyi Htwe was subsequently charged at Mupun Police Station in Mawlamyine under the Essential Supplies and Services Act.
A source close to the court said the verdict was handed down during the first week of July.
Authorities are also conducting additional investigations into U Nyi Nyi Htwe. According to security sources, the Thaton District Court is hearing a separate case alleging that fuel was smuggled to illegal gold mining operations and terrorist organizations in Bilin Township, Mon State. Another case has also been opened at Mudon Township Police Station over allegations of illegally supplying fuel to vessels at sea.
Fuel imports and distribution in Mon State are currently handled by Myanmar Energy King Company and Yarzar Min Industry Company, which were awarded import permits during the tenure of former Mon State Chief Minister U Aung Kyi Thein. Imported fuel is distributed through the Puma International Port Terminal in Kadong Paw Village, Mudon Township.
Residents have long complained that fuel prices in Mon State are higher than those in other states and regions. During the third day of the Second Regular Session of the Third Mon State Hluttaw on June 15, Kyaikmaraw Township Constituency No. 2 representative U Thant Zaw questioned whether the exclusive fuel import arrangements involving Yarzar Min Company were contributing to the higher prices.
Responding to the question, Mon State Minister for Electricity, Energy, Industry and Transport U Zeya Oo said Yarzar Min Company had originally been granted permission to import and distribute fuel to prevent shortages in the state. He added that because the company does not receive foreign exchange from the government at a subsidized rate, it must purchase foreign currency on the open market to finance imports, resulting in higher fuel prices than in other parts of the country.
The minister said the state government is exploring ways to reduce fuel prices but currently has no plans to arrange fuel purchases for Mon State directly from Thilawa Port in Yangon Region.
Although U Nyi Nyi Htwe has been convicted of violating the Essential Supplies and Services Act, no action has reportedly been taken against Yarzar Min Company itself.
In addition to U Nyi Nyi Htwe, several other fuel business operators have also been charged under the Essential Supplies and Services Act over alleged fuel smuggling. They include U Sein Tin (also known as Kasin), owner of Swan Myanmar fuel station; U Myint Zaw Oo (also known as Zaw Oo), owner of Mibba Myint Thar fuel station; and U Hla Win Khaing, owner of Min Thant fuel station.
