The Lao government has reassured the public that fuel supply and prices remain under control, despite mounting global pressures stemming from recent instability in the Middle East.
Speaking at a press conference on 11 March, Government Spokesperson Sonexay Sitphaxay, alongside Deputy Minister of Industry and Commerce Chanthaboun Soukaloun, addressed growing public concerns over the country’s fuel situation.
Officials explained that tensions in the Middle East, a region responsible for over 25 percent of global oil production, have constrained fuel exports since late February 2026, driving up international oil prices and disrupting supply chains worldwide, with Laos among the affected countries.
A Sharp but Brief Price Surge
The impact on Laos was swift and significant.
Since Laos imports over 97 percent of its fuel from Thailand, according to the Department of Foreign Trade, the country was particularly exposed to the global shock.
Between 4 and 10 March alone, diesel prices surged nearly 50 percent, from LAK 21,930 (USD 1.03) to LAK 32,860 (USD 1.54) per liter.
Special gasoline (95-octane) followed a similar trajectory, with Laos recording the second-highest petrol price increase globally during this period, according to Global Petrol Prices.
Some Relief
However, there is cautious optimism today, 12 March, as the government announced a reduction across all fuel types.
Special gasoline dropped from LAK 38,130 (USD 1.77) to LAK 36,610 (USD 1.70), while diesel fell from LAK 32,860 (USD 1.52) to LAK 31,560 (USD 1.46).
Supply Remains Secure
Despite the price volatility, officials confirmed that domestic fuel reserves remain sufficient.
Crucially, while Thailand suspended fuel exports to most countries following the outbreak of the Middle East crisis, Laos, along with Myanmar, was granted an exemption, allowing imports to continue normally.
Some fuel stations did experience temporary shortages in recent days, but authorities attributed these to transportation delays from storage depots rather than any overall supply deficit.
To address potential risks, Sonexay confirmed that the government has been closely monitoring the situation and has prepared both short-term contingency plans covering 30 days and medium-term measures extending up to one year, to be adjusted as developments unfold.


