The Lao government is working quickly to stabilize the country’s energy supply amid ongoing disruptions in global markets caused by the escalating conflict in the Middle East.
To address a surge in local demand, authorities have secured a deal for 14 million liters of diesel, helping to alleviate long lines and skyrocketing fuel prices. The authorities announced the deal during a joint press conference on 24 March by the Ministry of Industry and Trade, Lao Petroleum State Enterprise, and PTT (Lao) Company Limited, which also laid out their strategy to keep the pumps running and prevent a full-blown shortage.
The move follows a challenging few weeks for Lao motorists.
Just earlier this month, fuel prices saw one of their largest single jumps in years, with diesel skyrocketing by over LAK 7,000 per liter, drawing comparisons to the global energy crisis of 2022.
The current instability is being driven by strikes in Tehran that claimed the life of Iran’s Supreme Leader and triggered retaliatory attacks. This has put the world on edge over the Strait of Hormuz, a critical waterway that handles about a fifth of the world’s daily oil.
With crude prices ranging from USD 85 to USD 98 per barrel, the effects have been sharply felt in Laos, where over 97 percent of fuel is imported from Thailand.
Earlier in March, Thailand reduced fuel exports to Laos by 25 percent, exacerbating the situation.
International Suppliers
In response to the shortfall, Vietnam has stepped in to provide Laos with 50 million liters of fuel.
Laos signed a deal on 21 March with a state-run Vietnamese oil company. Alongside this, Laos and Vietnam have agreed to build cross-border fuel infrastructure and storage facilities to ensure a more stable and cost-efficient supply in the future.
Now, to get ahead of the crisis, the government and industry leaders signed a new contract with international suppliers to secure the 14-million-liter haul.
While the specific suppliers remain under wraps, the ministry confirmed that the fuel is scheduled to arrive no later than mid-April 2026.
Market Controls, Responsible Fuel Use
As part of efforts to stabilize the situation, the Ministry of Industry and Commerce has mandated daily stock reports from fuel importers to prevent hoarding and price manipulation.
Authorities have apologized for recent disruptions and are urging the public to use fuel responsibly while they work to secure the nation’s energy future.
The government is also exploring additional long-term solutions, including seeking new suppliers, to safeguard against future shortages.


