Southeast Asia Information Port (www.dnyxxg.com) reports that Vientiane's construction industry is facing pressure from rapidly rising building material prices, with some materials seeing increases of nearly 50%. High oil prices are the core factor driving up costs.
It is reported that since the beginning of March, Lao domestic oil prices have been adjusted five times in a short period, with only one decrease. Oil price fluctuations have directly impacted the construction industry, leading to a significant increase in the prices of aggregates, sand, and other building materials.
During periods of stable oil prices, sand and gravel suppliers charged construction companies 800,000 kip per truckload (approximately half a truckload of sand and gravel). However, with rising oil prices, this price has gradually increased to 1.2 million kip, and currently, depending on the transport distance, it has risen to 1.4 million kip per truckload. Transport operators indicate that the prices of these building materials will continue to fluctuate with international oil prices.
In addition to sand and gravel, the production and supply of other building materials such as crushed stone, as well as construction equipment rental service fees, have also increased simultaneously, forcing construction investors to bear the burden of rising operating costs across the board. According to statistics from the Lao Ministry of Industry and Commerce's Department of Internal Trade, fuel prices underwent their final adjustment on February 19th. Premium gasoline decreased from 26,450 kip per liter to 26,020 kip, regular gasoline from 22,460 kip per liter to 21,990 kip per liter, and diesel from 19,810 kip per liter to 19,640 kip per liter. Starting March 3rd, domestic fuel prices began to rise, increasing on March 5th and 9th, decreasing slightly on March 11th, and then increasing again on March 13th and 17th. Currently, regular gasoline at Vientiane gas stations is priced at 36,900 kip per liter, and diesel at 37,100 kip per liter.
