Chinese oil dealers in Myitkyina Township the capital of Kachin State in Northern Burma are being fleeced by the police, who are extorting money from them, locals said.

The Burmese ruling junta's police stations have been extorting money from local Chinese oil dealers without batting an eye lid or caring for the relations of the two nationalities. All the policemen in the township Police Station No.1 and No. 2 are involved in the extortion racket, local oil sellers told KNG.

According to local oil dealers who stock and sell diesel and gas in downtown Myitkyina, they have to bribe the police squad led by a vice-police station officer to the tune of up to 500,000 Kyat (est. US $ 444) every month in order to procure permission to sell oil.

The township authorities do not allow selling of oil in the downtown limits. However oil dealers can sell petroleum products downtown by bribing the township police, oil dealers said.

Small-scale roadside oil shops outside the downtown limits are asked for 5,000 Kyat (US $ 4) to 10,000 Kyat (US $ 9) each time by policemen. Sometimes, policemen fill gas without paying the roadside oil sellers, local oil sellers added.

In Kachin State, Chinese oil imported from Laiza controlled area of the Kachin Independence Organization on the Sino-Burma border has been banned by the junta, but, oil consumers rely on Chinese oil rather than the state-owned Myanma Oil Corporation (MOC), local oil sellers said.

At the moment oil prices have been hiked in Kachin State and a gallon of gas has touched between 6,000 – 7,200 Kyats (US $ 5-6) whereas a gallon of diesel is now 6,800 to 7,500 Kyats (US $ 5 – 7).  A gallon of diesel and gas prices were about 4,000 Kyat (US $ 4) in March.

In Kachin State, many residents rely on the illegal Chinese oil imports from Laiza rather than other businesses for their survival and the Chinese oil is imported to Kachin State by paying bribe to military authorities, local oil dealers said.