Mr Phouvieng Phongsa (seated far centre) chaired the meeting held on Friday.

Commerce officials discuss fuel prices amid global price hike

Officials of the Domestic Trade Department under the Ministry of Industry and Commerce held consultations with stakeholders involved in the import, supply and distribution of fuel across Laos as part of efforts to manage the retail prices of fuel.
Representatives from the public and private sectors attended this intensive meeting on Friday to share their views on the fluctuation of fuel prices.
While chairing the meeting, the Domestic Trade  Department’s Director General, Mr Phouvieng Phongsa said: “The primary purpose of this gathering is to hear explanations for the management of fuel prices and the calculation of the price structure in Laos, and also the exchange of information among the participants.”
Officials also briefed the gathering on the price structure for fuel, which is based on several factors, especially cost, insurance, and freight (CIF). They also spoke about other factors such as international shipping agreements that cover crude oil shipped via sea or waterways until the shipments reach storage facilities in Laos.
The spike in fuel prices following the war in Ukraine is currently a global issue, and many countries are grappling with uncertainty in fuel supplies. The increase in global prices has affected the retail prices of all types of fuel in Laos, which meets all its energy requirements through imports.
The increase in fuel prices has also impacted the livelihood of people and agricultural production.
In addition, the requirement of foreign currencies to buy fuel has increased, and the issue has also impacted the production of goods and transportation costs. The exchange rate for the Lao kip is unstable and some petrol stations across the country had recently run out of fuel.
In order to find short and long-term solutions to these issues, the government has proposed a number of measures, including a decrease of excise tax on fuel, enabling fuel importers to access foreign currencies more easily, and buying fuel from different sources.
The ministry has encouraged several domestic refineries and mixed fuel factories to speed up the expansion of fuel supply, based on the structure of local retail prices, including the payment of a number of taxes such as value-added tax and excise tax.

By Times Reporters
(Latest Update July 4, 2022)