On 24 June, Laos reinstated higher excise taxes on fuel, restoring regular gasoline tax from 15 percent to 25 percent and increasing diesel tax from 0 percent to 5 percent, according to a notice issued by the Ministry of Industry and Commerce.
The adjustment marks a return toward normal fuel taxation after emergency tax cuts introduced in March to curb soaring fuel prices and ease inflation caused by global oil market volatility.
Following the tax increase, retail fuel prices in Vientiane Capital were revised on 25 June. Regular gasoline now costs LAK 30,690 (USD 1.38) per litre, diesel LAK 24,560 (USD 1.11), and premium gasoline LAK 35,840 (USD 1.62).
The ministry also announced that premium gasoline will now be priced separately from regular gasoline based on its own Cost, Insurance and Freight (CIF) value, the cost of importing fuel before taxes and other charges. Customs duties and excise taxes will be applied in accordance with existing laws, while the fuel marker fee remains temporarily suspended.
March emergency measures
The latest move follows emergency measures introduced on 17 March, when the government cut excise tax on regular gasoline from 25 percent to 15 percent and reduced diesel tax from 10 percent to zero to contain rising transport and living costs.
Meanwhile, premium gasoline was subject to the same import duty, excise tax, and CIF-based pricing as regular gasoline, while the marker fee, a small charge used to identify and monitor imported fuel, was also temporarily suspended.
A separate notice issued on 18 March also allowed temporary flexibility in fuel taxation, permitting excise rates of up to 31 percent for gasoline and 21 percent for diesel depending on market conditions.
Those temporary measures were scheduled to remain in place until 30 June, with authorities indicating they would gradually restore normal tax rates if global oil prices stabilized.
The government has also directed relevant agencies to pursue longer-term energy reforms, including securing more reliable fuel imports, reviewing fuel pricing structures, promoting electric vehicles, and reducing fuel consumption through remote work and digital services.
The tax adjustment comes as Laos continues efforts to strengthen fuel security following supply disruptions earlier this year that highlighted the country’s dependence on imported petroleum.
In June, Laos signed a fuel supply agreement with Thailand’s state-backed PTT Group to secure more stable cross-border petroleum supplies. Thailand currently accounts for around 92 percent of Laos’ refined fuel imports. The agreement followed the March Strait of Hormuz crisis, when Thailand temporarily restricted most fuel exports to safeguard domestic reserves while maintaining limited shipments to Laos and Myanmar.
Laos has also explored diversifying its fuel sources.
In May, Russia said it was considering its first-ever petroleum exports to Laos via Vietnamese ports, while the government continues promoting electric vehicle adoption, reviewing fuel subsidies, and expanding regional energy cooperation.
