Laos Finance Minister Guarantees Three-month Fuel Supply

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Laos Finance Minister, Bounchom Oubonpaseuth, guarantees fuel supplies for three months (Photo: Lao National Television).
Laos Finance Minister, Bounchom Oubonpaseuth, guarantees fuel supplies for three months (Photo: Lao National Television).

Lao Minister of Finance, Mr. Bounchom Oubonpaseuth, has guaranteed fuel supplies will be sufficient for motorists across Laos for the next three months.

He made the statement in an address during today’s National Assembly session.

According to Minister Bounchom, the government has opened a line of credit for the Lao National State Fuel Enterprise to purchase some 200 million liters of fuel, which he says will be enough to keep the country going through June, July, and August.

The country’s economic woes have led to chronic fuel shortages, with motorists forced to queue for petrol daily.

Petrol pumps in some provinces, such as Bolikhamxay, have completely run dry.

 

According to a recent report by the World Bank, the kip has depreciated sharply in 2021-2022 by about 30% against the US dollar over the year up to April 2022.

And in May, Laos’ inflation rate reached 12.8 percent, the highest point in 18 years.

Experts say Laos faces both liquidity and solvency challenges due to its high debt service burden, poor revenue collection, limited financing options, and low currency reserves.