Laos Open but with serious Fuel Issues

DavidFL

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Laos Fuel Crisis Nears Breaking Point as Vientiane Capital Runs Dry.

Motorists in the nation’s capital queued for hours yesterday in the hope of filling up their tanks before pumps ran dry.

Provinces across the country have been suffering shortages for weeks, with early warning signs as Luang Namtha ran out of fuel in late March. The situation worsened in Pakse and Savannakhet, before finally hitting Vientiane Capital yesterday afternoon.

Long queues stretching out into major roads were witnessed as panicked motorists drove from pump to pump in a desperate attempt to find fuel.

Faced with losses due to the plummeting local currency and a lack of foreign reserves, importers have been unable to continue purchasing fuel.

In fact, importers have said that they have only been able to secure twenty percent of the amount of fuel required by the nation.

Reports suggest that Laos needs some 120 million liters of fuel each month, with importers now able to import only around 20 million liters.

According to a letter issued to retailers yesterday by the Lao State Fuel Company, the war in Ukraine coming on the heels of the Covid-19 pandemic has made for unstable global oil markets.

The company regretfully informed its resellers that it had reached a point where it could “no longer meet the demand of its customers.”

The government has made several attempts to resolve the fuel crisis, with the National Assembly agreeing to slash excise taxes on fuels after an emergency meeting yesterday, and the finance ministry attempting to control the exchange rate.

But with rampant inflation, a rapidly depreciating local currency, and no foreign currency reserves, fuel suppliers are unsure how much longer they will be able to continue importing even small amounts.




AND
A notice issued by the Prime Minister’s Office yesterday directed relevant ministries to seek cheap oil from Russia.

The notice was in response to proposals by the Ministry of Finance and the Ministry of Industry and Commerce on ways to stabilize domestic fuel prices.

According to the notice, the Prime Minister’s Office agrees with a suggestion to consolidate certain fuel importing companies and the Lao State Fuel Company into a single entity for the importation and distribution of fuel.

The new company would try to seek cheaper fuels from new sources, including Russia, to try to reduce initial purchasing costs and ease the burden on retailers.

The notice also directed the Ministry of Finance to coordinate with the Bank of the Lao PDR and other relevant sectors to look into better controls on currency exchange.

The finance ministry and the central bank have been tasked with ensuring foreign currency reserves are sufficient for the importation of fuel.



Petrol is in short supply throughout the country.
Big bike Tour operators going to Laos have been advised to carry extra fuel from Thailand in their back-up vehicles.
The price at the bowser is 70 baht a litre, but there are reports of reselling for double that price to those desperate for fuel.
Take your time heading to Laos by big bike folks.