Laos to Seek Oil From Russia

Oil fields in Russia (Photo: Bloomberg)
Oil fields in Russia (Photo: Bloomberg)

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.