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Laos intensifies measures to tackle fuel crisis

Source: Xinhua| 2026-03-18 21:21:45|Editor: huaxia

VIENTIANE, March 18 (Xinhua) -- The Lao government is taking urgent steps to ease the fuel crisis amid rising global energy prices and supply chain disruptions, rolling out measures to stabilize prices, ensure steady supplies, and prevent sudden spikes that could impact households and businesses nationwide.

In a notice issued Tuesday, the Lao Ministry of Industry and Commerce announced cuts to fuel excise taxes, reducing gasoline from 25 percent to 15 percent and diesel from 10 percent to 0 percent, aiming to prevent domestic prices from rising sharply.

The government will also allocate funds from its subsidy program to stabilize prices, ease the burden on consumers, and mitigate sudden spikes amid global market fluctuations. Importers and distributors have reaffirmed their commitment to maintaining stable fuel supplies, while authorities pledged to expand storage and distribution, particularly in remote areas.

In response to escalating global energy prices and supply chain disruptions, the Prime Minister's Office issued a directive on March 13 instructing ministries to implement measures to reduce fuel consumption and strengthen economic stability. These include rotating staff, increasing remote meetings, limiting unnecessary travel, and enforcing cost-saving measures.

Officials will monitor fuel importers and distribution stations, promote fuel conservation, expand electric vehicle infrastructure, and oversee key agricultural product prices to prevent volatility. Meanwhile, authorities will continue encouraging public transport use, assess the impact of the crisis on economic growth, and promote renewable energy.

To support residents during the fuel shortage, a mobile fuel service was launched in the Lao capital Vientiane on Wednesday. Meanwhile, in Champasak province, authorities began offering a free bus service on main and suburban routes. These measures will remain in place until the fuel situation stabilizes.

In a Wednesday press interview, Buakhong Nammavong, Minister and Head of the Prime Minister's Office, said the conflict in the Middle East has impacted the world, including Laos, contributing to domestic fuel challenges affecting people nationwide.

In response, the Lao government has taken urgent measures, including cutting excise taxes, using oil fund resources to moderate prices, and sourcing fuel from various countries. A special committee has also been appointed to address the crisis, while policies on rotating work shifts and remote work have been implemented to mitigate the impact, said Buakhong.

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