Soaring diesel prices shock Homalin households with monthly power bills hitting 1 million kyat

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Hsu/Thant Zin (NP News) - Dec 18
In Homalin Township, the monthly household electricity cost has soared to approximately one million kyats per month, according to locals who spoke to The Statesman journal.
Homalin, a town comprising about 4,000 households, receives its electricity supply through a private power distribution system operated by Phothicho Company.
"Since we use diesel to generate power, when fuel prices increase, the electricity bill also goes up. For the October bill paid in November, it was over 4,000 kyats per unit, but now it's 4,580 kyats per unit. It fluctuates depending on diesel prices. There's a big difference between hydroelectric power and diesel-run generator. In Homalin town, there are no factories or workshops. Even the existing lathe workshops operate with their own generators. An average household bill is around 300,000 to 400,000 kyats. If they use air conditioners, it's around 700,000 to 1,000,000 kyats," said a local.
He added that Phothicho Company distributes electricity in Homalin using large diesel generators, resulting in meter rates that have increased sharply alongside the current high prices of industrial diesel fuel.
A resident explained, “At the moment, diesel prices are around 30 lakhs per barrel, ranging from 2.8 to 3 million kyats. Petrol is slightly more expensive than diesel. Both road and river transport routes are blocked. Sometimes boats come from Banmauk, but frequent armed clashes between PDFs and the military in that area have closed the routes. Fuel supplies from India have also been cut off. That’s why Homalin is now facing a very tight situation.”
According to a Yangon resident, a typical middle-class household, even with several electrical appliances, spends a mere 10,000 kyats per month on electricity.
The resident said, “It used to cost around 2,500 kyats, then rose above 3,000. Later, it increased from over 4,000 to more than 9,000 kyats. Recently, it has nearly reached 10,000.”
The combination of extremely high power charges and an unreliable electricity supply is causing significant hardship for Homalin residents, they report.
Meanwhile, the completion of the regional government's Nampat Hydropower Project in Homalin Township has reportedly been postponed to the 2026–2027 fiscal year due to difficulties in securing the construction area. –