Laos Orders Civil Servants to Work From Home, Switch to Electric Vehicles Amid Fuel Crisis

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Laos’ Prime Minister has ordered government ministries to cut back on in-person meetings, introduce rotating work shifts, and begin transitioning state vehicles to electric.

This is the latest move of a sweeping emergency order aimed at reducing the country’s fuel consumption as the Middle East crisis continues to squeeze supply and drive up prices.

The notice, signed on 13 March, is the most significant government response yet to an energy crunch that has rattled Laos since late February.

Between 4 and 10 March alone, diesel prices surged nearly 50 percent, from LAK 21,930 to LAK 32,860 per litre, while special gasoline recorded the second-highest price increase globally during the same period, according to Global Petrol Prices.

A modest reduction was announced on 12 March, bringing diesel back to LAK 31,560 per litre, but prices remain far above where they were before the crisis.

Structural Vulnerability

Laos imports over 97 percent of its fuel from Thailand, leaving it acutely exposed when Thailand briefly suspended all fuel exports following Iran’s closure of the Strait of Hormuz in late February.

Panic buying emptied petrol stations across Vientiane within hours. Thailand subsequently granted Laos an exemption, and a 12-million-litre import helped ease immediate pressure, but the disruption laid bare just how little buffer the country has.

The Ministry of Industry and Commerce had already ordered nationwide inspections of fuel depots and stations on 13 March, directing authorities to check supply levels, review delivery records dating back to 1 February, and take action against any operators found hoarding or manipulating supply.

Companies found in violation face formal warnings, licence suspensions, or public disclosure as fuel hoarders.

But the latest Prime Minister’s order goes further.

Fewer Meetings, Shorter Commutes

The most immediate changes will be felt inside government offices. Ministries are directed to cut travel to local areas, replace in-person meetings with remote alternatives wherever possible, and put general staff on rotating shifts to reduce the number of people commuting daily.

The order also uses the crisis as a moment to push Laos’ transition to electric vehicles into a higher gear.

Registration and service fees for electric vehicles will be cut by 30 percent, while fees for fuel-powered vehicles will rise by the same amount. Import procedures for EVs are to be streamlined and made less costly.

Transport companies are required to ensure electric vehicles make up at least 10 percent of their fleets by the end of 2026.

In Vientiane, authorities should estend the BRT network to the train station and airport.

Government procurement of new fuel-powered vehicles for administrative use should be halted unless strictly necessary.

Prices, Supply, and Food Security

Beyond the workplace and transport measures, another order in early March directed the Ministry of Industry and Commerce to crack down on hoarding and price manipulation across fuel and essential food items.

Rice, meat, eggs, fish, and vegetables are all to be kept at stable prices.

The Ministry of Agriculture and Environment will also be in charged of helping farmers shift to renewable energy, adopt fuel-efficient technologies, and access low-interest loans to cushion the impact of rising input costs.

A dedicated task force will monitor implementation and report directly to the Prime Minister daily for the duration of the crisis.

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