Myanmar official defends fuel price hikes that sparked protests

MANILA (AP) - A recent increase in fuel prices that sparked a series of rare protests in Myanmar was triggered by spiraling global oil prices and was not a political move, a diplomat from the impoverished Southeast Asian nation said Sunday.

Myanmar could no longer afford to subsidize fuel so heavily because of the steep increases in oil prices worldwide, Thaung Tun, Myanmar's ambassador to Manila, told The Associated Press on the sidelines of a regional ministers meeting in the Philippine capital.

Myanmar activists have speculated that the slashed subsidies _ leading to a doubling of prices at the gas pumps _ was needed to remedy a government cash shortage. Independent magazine Irrawaddy said the move could be a prelude to privatization, or that it may even reflect internal conflict within the junta _ a deliberate move to provoke unrest, further stall the approval of a long-awaited constitution and embarrass military ruler Gen. Than Shwe.

But Thaung Tun said it was purely an economic issue _ the number of cars and motorists on the streets of Myanmar has increased in recent years, bolstering fuel consumption and subsidy costs.

"The government has no recourse but to remove the subsidies," he said. "If you won't do that, it'll be very costly to the government ... It's not politics."

Fuel prices in Myanmar remain among the lowest in Southeast Asia, despite the subsidy cut, Thaung Tun said.