Southeast Asia Information Port (www.dnyxxg.com) – Lao Prime Minister's Office Minister and Government Spokesperson Somnexay Sipachai and Deputy Minister of Industry and Commerce Chanthabong Soukalun jointly held a press conference on Wednesday to address recent public concerns about fuel supply. They stated that domestic fuel reserves are sufficient and overall supply is under control. The temporary shortage is due to transportation delays. The government has implemented a series of measures, including price reductions and proposed subsidies, and appealed to the public to conserve fuel and jointly cope with global supply uncertainties.
Recently, due to the turmoil in the Middle East (a major global oil production and export region, where fluctuations have led to rising international oil prices and tighter supply), concerns about fuel shortages have arisen in Laos, with related discussions continuing to escalate on social media. In response, Somnexay Sipachai clarified that "domestic fuel supply remains under control, and reserves are sufficient to support demand for a period of time." He explained that the temporary shortages at some gas stations are primarily due to delays in the transportation of fuel from storage depots to gas stations, rather than insufficient domestic fuel inventory.
He further explained that the government is closely monitoring the international situation and ensuring a continuous fuel supply for the public and key development projects through inter-ministerial and provincial coordination mechanisms. Simultaneously, it is coordinating with neighboring countries through existing cooperation mechanisms to stabilize fuel import channels. In response to the current situation, the government has formulated short-term emergency measures covering 1-30 days and a medium-term response plan for 3-12 months. These measures will be dynamically adjusted according to changes in the situation. According to the Ministry of Industry and Commerce, Laos' fuel imports this month have decreased slightly compared to normal levels, but the decrease is limited and has not had a substantial impact on overall supply.
Regarding price control, Deputy Minister of Industry and Commerce Chanthaben Soukalun revealed that the government has implemented fuel price reductions, lowering the price of all types of fuel by approximately 200 kip per liter to offset the pressure of rising import costs. Considering that diesel is widely used in key sectors such as transportation, agriculture, and manufacturing, the government is evaluating a special diesel subsidy program, and expects to complete the subsidy calculation within the next two days. He also explained that the new tariff adjustments and pricing measures must comply with Lao law and be submitted to the National Assembly for approval before implementation. If any changes to the existing legal framework are required, a proposal will be submitted for review according to procedure, and existing measures will continue to be implemented during this period.
Chanthaben Soukalun added that Laos has no domestic oil reserves or refineries and relies entirely on fuel imports. Currently, the closure of some international oil shipping routes has reduced global supply by nearly 20%, and this, coupled with the public's concentrated refueling, has further slowed fuel transportation efficiency, exacerbating temporary shortages in some areas. "The situation is not yet in a serious crisis, but imports are indeed lower than before," he emphasized. "Conserving fuel is crucial at present. The public is advised to reduce unnecessary travel, prioritize public transportation, and businesses and individuals may consider purchasing energy-saving options such as electric vehicles."
The government also issued a warning, strictly prohibiting businesses from hoarding fuel and price gouging. The public can report any violations through the Ministry of Industry and Commerce hotline 1510 or the consumer protection website. Sonexay Sipacay called on civil servants, businesses, and the general public to unite and cooperate to reduce unnecessary fuel consumption, jointly avoid unnecessary market disruption, and help the country smoothly cope with the current situation. (End)
