A rumour in circulation that salaries of government employees is set to be increased has sent fuel price soaring along with that of other goods in Chin state in Burma as of this month.

A bag (about 110 lbs) of Pawsanhmwe rice costs Kyat 20,000 up from Kyat 16,000. The price of Ayeyazarmin rice rose from Kyat 23,000 to 37,000 in Hakha, the capital of Chin state.

“The news of an increase in salaries of government employees spread in the region and prices of consumer goods such as diesel, petrol and rice shot up,” said a local in Hakha.

During the election campaign in November last year, the Union Solidarity and Development Party (USDP) promised government employees that salaries would be increased, if the USDP wins the polls, but the authorities are yet to raise salaries of government employees in the country.

The price of rice was Kyat 3,000 per pye (bout 2 kilograms) in the local market in Kalaymyo, Sagaing division early this year, but now it is being sold at Kyat 6000 per pye, said a local from Kalaymyo.

“If the government increases salaries of employees, they will face a big problem along with local people,” said a Falam local.

The fuel price hike has impacted local bus fares and other transport costs. Petrol is now being sold at Kyat 5,500 per gallon and the authorities have limited it to Kyat 2,500 per gallon. Kalaymyo and Hakha transportation costs are now Kyat 6500 per head.

“I heard that the government will increase salaries of employees from April this year, but it is uncertain,” said Mr Van Cin, a state Hluttaw representative and secretary of The Ethnic National Development Party.