Laos Moves to Stabilize Fuel Supply as Over 1,000 Stations Reported Closed

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Lao Authorities are stepping up efforts to stabilize the country’s fuel supply after more than 1,000 fuel stations were reported closed nationwide, and many people are queuing up for fuel.

According to data published by the Department of Internal Trade on 11 March, Laos had a total of 2,538 fuel stations across the country. Of these, 1,061 stations were reported closed, while 1,477 remained open.

Some provinces have been more affected than others. In Vientiane Province, 121 out of 207 fuel stations were reported closed, leaving 86 still operating. Xieng Khouang Province also reported high closure rates, with 121 out of 153 stations closed and only 32 stations continuing to operate.

Meanwhile, hundreds of people are lining for gas, which causing traffic congestion and fear of fuel shortages. 

To address this, the government ordered nationwide inspections of fuel supplies on 13 March following reports that many gas stations had temporarily closed, ran out of fuel, or restricted fuel sales. 

Authorities have been tasked with checking fuel stocks at stations and storage depots, reviewing supply contracts, and examining delivery and sales records dating back to 1 February to determine the causes of the disruptions.

Officials said inspections will continue as authorities monitor fuel distribution and investigate possible causes of the closures, including supply disruptions, pricing concerns, and stock management at retail stations.

Three Fuel Stations in Champasak Fined

As part of the nationwide monitoring efforts, Champasak authorities fined three fuel stations in Paksong district for selling gas and diesel above the government’s regulated price.

During inspections carried out on 14 March, officials from the Champasak Department of Industry and Commerce found that the stations were charging significantly higher prices than the official rate set for the province.

At the Bounmy gas station in Lak 11 village, gasoline was sold at LAK 38,000 (USD 1.76) per litre, while diesel was priced at LAK 39,000 (USD 1.81) per litre.

2 Phetsavanh gas stations located in Thongkataiy village and Xe Pian village were also found selling gasoline at LAK 39,670 (USD 1.84) per litre and diesel at LAK 41,370 (USD 1.92) per litre.

The official fuel prices in Champasak on 14 March were LAK 32,530 (USD 1.51) per litre for gasoline and LAK 32,920 (USD 1.53) per litre for diesel.

Authorities issued formal violation reports and imposed fines of LAK 50 million (USD 2,330) on the operators. Officials warned that repeated violations could lead to heavier penalties, including fines of up to LAK 100 million (USD 4,662) or the suspension of the station’s business license.

Cuts Import Tax and Allocates Support Fund

In a separate move to ease pressure on the fuel market, the Ministry of Industry and Commerce announced on 16 March that the import tax on special gasoline 95 will be reduced from 20 percent to 15 percent, bringing it in line with the tax rate applied to regular gasoline 91.

The decision was discussed during consultations involving government officials, the Bank of the Lao PDR, and representatives from the fuel industry.

Officials said the tax reduction is intended to lower fuel import costs and help stabilise retail prices at gas stations across the country.

The government also plans to allocate between LAK 300 billion and LAK 600 billion from a dedicated fuel support fund to help manage supply and reduce the impact of global oil price fluctuations.

Authorities said the funding will be used to support fuel distribution and stabilise domestic prices, particularly during periods when international fuel markets experience significant volatility. 

The measure is intended to prevent sharp price increases and maintain stable fuel availability for consumers across Laos.

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