Ms Chansouk Sengphachan.

Govt says 600 petrol stations to provide regular services

At least 600 petrol stations nationwide will be open every day to supply fuel and help overcome the current shortage.
This welcome news was announced by the Deputy Minister of Industry and Commerce, Ms Chansouk Sengphachan, at a news conference held in Vientiane on Monday.
A sharp rise in global oil prices due to the Ukraine conflict and sanctions on Russia, one of the world’s fuel leading producers, have resulted in the ongoing fuel shortage in Laos.
These factors have also impacted the economies of other countries in the region and around the world, leading to inflation and a sharp rise in commodity prices.  
The Lao government, especially the Ministry of Industry and Commerce, has been actively working to tackle the country’s economic woes since the end of last year, Ms Chansouk said.  
The government has created a taskforce to respond to the crisis and to formulate measures to tackle the fuel shortage, the rise in prices and foreign exchange rates in the short, middle and long term. This committee is working with the relevant government bodies, she said.    
“After the meeting of the taskforce and with the agreement of the government, we have supplied dollars to the main fuel importers at the rate of 14,065 kip per dollar for the purchase of fuel, which will be distributed to petrol stations around the country.”
“This will increase the fuel supply compared to last month,” Ms Chansouk said.
According to information collected by relevant sectors, average fuel imports were 1.23 million litres on June 14, 2.99 million litres on June 15, 3.57 million litres on June 16, 2.23 million litres on June 17, 4 million litres on June 18 and 19, and 5.92 million litres on June 20.
On June 20, 706 petrol stations across the country were open to supply fuel.
The Ministry of Industry and Commerce will work closely with provincial industry and commerce departments to monitor the distribution of fuel from warehouses to petrol stations, Ms Chansouk said.
The government is preparing to approve a high value letter of credit for the Lao State Fuel Company to ensure sufficient fuel supplies across the country.
The continuing adjustment of fuel prices impacts fuel imports and Laos needs more foreign exchange to purchase energy, but the sources of foreign exchange are limited, Ms Chansouk said.
The government has instructed fuel importers to jointly negotiate oil purchases from cheaper sources that can also supply sufficient fuel in the long-term.
The ministry is also working with the relevant sectors to promote fuel processing and oil refineries, especially Lao Petroleum and Chemical Co., Ltd. (Laopec), Yodngum Power Mix Fuel Factory and Lao Agro-Tech Public Company. 
These companies are expected to supply about 65 million litres of regular fuel, 150 million litres of diesel, and 4 million litres of bio-fuel a year.
Ms Chansouk said the fuel crisis is not affecting only Laos, but most countries around the world. The ministry, on behalf of the government, asks the public to adapt to this difficult situation and to face the crisis together, she said.
She asked fuel suppliers and traders not to take advantage of the situation and hoard fuel in order to make a bigger profit. People who know of anyone resorting to such steps can contact authorities on the hotline number 1510 or via the website www.lcp.gov.la.

By Times Reporters
(Latest Update June 22, 2022)