Fuel price set to fall this week
Fuel price set to fall this week
The price of fuel in Laos is expected to fall slightly at the end of this week alongside the continuing downward trend in the price of oil on the world market.
Lao Petroleum and Gas Group Association Secretary General, Mr Thong Thammarath, said yesterday association members had agreed with the government to lower the price of fuel by 100 to 150 kip per litre, hoping the resolution would become effective this week.
“We have sent price information to the Ministry of Industry and Commerce to consider and approve and we expect the fuel price will drop at the end of this week,” he said.
The government also lowered the fuel price last week for the first time this year, after five previous increases. Yesterday, diesel in Vientiane was selling for 9,850 kip per litre, down from 10,000 kip last week, while the price of regular petrol remains changed at 11,000 kip.
In response to complaints that the price should be much lower after the global market price fell sharply in recent weeks, Mr Thong said fuel distributors were slow in putting the price up in March and April when oil rose on the world market.
“We suffered a loss when the government asked us to put the price of fuel on hold while it rose in the world market. Now we've asked the government to slow the decrease in the price so they can make a profit to subsidise the loss,” he said.
He admitted that the price of fuel in Laos was a little higher than in Thailand. At present, Thai petrol stations sell regular petrol for 9,180 kip (36 Thai baht) per litre and diesel at 7,650 kip (30 Thai baht).
Mr Thong said the government should set the price of fuel in Laos lower, adding that 30 percent of the current price was taxes and other charges.
Economists say Laos should not keep the price of fuel above the price it sells for in neighbouring countries, pointing out that this would cause motorists in Vientiane to fill their tanks in the Thai provinces of Nong Khai and Udon Thani.
They said many motorists who planned to travel to Thailand this weekend intended to fill up their tanks there to save on the cost of travelling, adding that this would negatively affect Laos because motorists would be depriving the government of taxes.
Director General of the Lao National Economic Research Institute, Dr Liber Libouapao, said the government should consider lowering fuel prices as a means to curb inflation. He said the price of fuel had a knock-on effect on transport costs and consumables.
People are starting to complain about the rising cost of living, especially after the government put up electricity rates in March. Many people say they are not benefiting from the growing number of power plants in the country
VIENTIANE TIMES
