Petrol imports on the rise
Petrol imports on the rise
The quantity of petrol and engine oil being imported to Laos is on the rise as demand continues to grow alongside the expanding vehicle fleet.
In 2013, Laos imported about 911 million litres of petrol and engine oil, worth US$671 million.
Last year that figure rose to around 960 million litres, worth US$614 million, or an increase of 3.36 percent, Lao State Fuel's marketing and sales director, Mr Thong Thammalath, told local media recently.
This year imports are expected to increase again to reach some 1,270 million litres, worth US$780 million.
The bulk of the petrol and engine oils are imported from Thail and and Vietnam.
Last year, the Ministry of Industry and Commerce declared that fuel companies needed to adjust the price of petrol on 20 occasions, of which 12 w ere downward revisions.
However, if compared to Thailand and Vietnam, the quantity of petrol in Laos is less but the price is higher as it has to be imported so transportation and taxation fees add to the cost.
Mr Thong said whilst demand for fuel is expected to continue to grow, the cost of petrol at the pump is expected to remain low for at least the next six months.
However, later in the year the price may rise depending on fluctuations in the price of oil on the world market, as well as political factors in the Middle East.
The current low price is good for businesses as it means their transport costs are reduced and they can be more cost competitive.
