Fuel Overview
Laos’ fuel consumption is reported at 1,200 million litres per year or about 100 million litres a month. However, the country has no proven oil and gas reserves. Supplies of refined petroleum product requirements for transport, household, industrial, commercial, and other applications are mostly imported through Thailand (70%) and Vietnam (30%). The petroleum products—gasoline, diesel fuel, boiler fuel, jet fuel and lubricant are imported by State-owed and private companies. Of all imported products, diesel fuel has the largest share at around 73%, followed by gasoline at around 23%. Jet fuel is in the fourth place after the boiler fuel.
State-owed and private companies own and operate product storage terminals nationwide. There are at least 72 terminals in the country and the combined storage capacity is 60,000 Kilolitres (KL). The Lao State Fuel Company (LSFC), a 100% state-owned company under Ministry of Industry and Commerce (MOIC), owns 16 terminals with a storage capacity at 27,000 KL. Of the total of 72 terminals, 26 are located in Vientiane Capital and 3 are owed by LSFC.
From 2020, Laos had two oil refineries. Located in Saysettha Comprehensive Development Zone, 19 km away from Wattay International Airport, 1.5km from the China-Lao Railway Freight Station, and equipped with 16 oil tanks with a total storage capacity of 80 million litres in Vientiane Capital, Lao Petroleum & Chemical Co. Ltd (Laopec), a China-Laos joint venture, has launched the first phase production of its 3 million tons/year refinery project which includes gasoline, diesel, and other chemical products. Aviation fuels are also on the list for production at final phase of the refinery is scheduled to be completed by 2030. Yodngeum Power Mix Fuel Factory, which the second refinery located in Pek district, Xieng Khouang province—390 km from the Capital, is primarily dedicated for a production of diesel fuel from raw materials imported 318 km away from Vietnam. The factory has a capacity to produce 100 million litres of petroleum products per year and a storage capacity of 2.4 million litres. These two developments are anticipated to meet approximately 60% of the fuel demand in Laos.
For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List.
Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly.
Fuel Pricing
Fuel prices in Laos are controlled by government. MOIC makes a decision on fuel (all types) price based on fluctuation of world oil prices. LSFC is delegated by MOIC to adjust (increase or decrease) oil prices in form of writing and disseminate it to all oil companies throughout the country. In other words, very private oil companies, though import their product separately, to sell their goods at the designed price.
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Fuel Prices per Litre as of: 18 Dec 2023 (local currency and USD - $) |
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Petrol |
27,860 LAK or USD 1.35 |
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Diesel |
19,620 LAK or USD 0.96 |
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Paraffin |
Not available |
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Jet A-1 |
11,286 LAK or USD 0.55 |
Seasonal Variations
There are very little seasonal variations in the wider fuel market. Due to the fact that some parts of the country, such as Phongsaly, Huaphan province in the North and Salavan and Sekong province in the South, are harder to reach during the rainy season, some areas might see a temporary shortage of fuel. Shortage usually lasts a few days to a week or two.
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Seasonal Variations |
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Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?) |
Yes, if shortages were to arise probity would be given to the military. But such scenario has not yet been reported. |
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Is there a rationing system? |
No |
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Is fuel to lower income / vulnerable groups subsidized? |
Yes |
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Can the local industry expand fuel supply to meet humanitarian needs? |
Yes |
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Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs? |
Yes. Many have long term agreements. |
Fuel Transportation
Most fuel companies have their fleets for delivery to fuel stations country-wide. Internal transport, which is commonly used by LSFC, is operated by utilizing 8 KL loading capacity tank truck to deliver fuel from terminals to fuel stations. Larger tank trucks with 35 KL loading capacity and a maximum loading capacity of 45 KL tank trucks are used to import fuel from Vietnam and Thailand respectively.
LSFC, which has fuel depots and fuel stations in every major city throughout the country and a market share of about 30% over the years, is obliged to sell a greater volume of fuel to meet demand at a loss when private companies are unable to generate profits because of the Government’s delay in raising fuel prices.
There are currently about 16 companies (comprising Lao government subsidiaries of international oil companies, and local companies) that import petroleum products, and many of these also retail the products. The largest companies (in terms of the total sales) being; Lao State Fuel Company; Petroleum Trading Lao public Company; PTT (Lao) Co., Ltd; PV Oil Lao co., Ltd; and Petrolimex (Lao) Co., Ltd.
Other companies include; Lao Modern Petroleum Co., Ltd; Meuangluang Petroleum Co., Ltd; Dalachaleum Oil Co., Ltd; Lo Petroleum Co., Ltd; Lanexang Petroleum Co. Ltd.; Imperial Petroleum Co., Ltd; Bousavanh Energy Co., Ltd; Phetsamay Petroleum Co., Ltd; Vientiane Petroleum Co., Ltd.; and Dafi Petroleum Co., Ltd.
Standards, Quality and Testing
Laos currently has no independent standards organizations. In 2011, the Department of Standards and Metrology was established as an independent department alongside the Department of Intellectual Property under the Ministry of Science and Technology. However, MOIC currently supervises these departments as Ministry of Science and Technology was dissolved. In 2014, Laos passed the Law on Standards and USAID’s LUNA Lao II project seeks to assist Lao government in implementing regulations for the law.
Fuel quality standard remains, however, as an aspiration in Laos. The country is reportedly committed to comply with Euro IV vehicle emission standards and the country’s first refinery’ fuel product is also reported to comply with Euro V emission standards. It’s fair to assume that standards of exporting country are accepted for import. This is the same for the importation of other items. As long as they meet the country of exports standards they are accepted in Laos.
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Industry Control Measures |
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Do tanks have adequate protection against water mixing with the fuel? |
Yes |
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Are there filters in the system which monitor where fuel is loaded into aircraft? |
Yes |
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Is there adequate epoxy coating of tanks on trucks? |
N/A |
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Is there a presence of suitable firefighting equipment? |
Yes |
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Standards Authority |
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Is there a national or regional standards authority? |
Yes |
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If yes, please identify the appropriate national and/or regional authority. |
National: Department of Standards and Metrology, MOIC Regional: |
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If yes, are the standards adequate/properly enforced? |
N/A |
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Testing Laboratories |
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Are there national testing laboratories? |
N/A |
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Fuel Quality Testing Laboratory |
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Company |
N/A |
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Name |
N/A |
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Address |
N/A |
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Telephone and Fax |
N/A |
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Contact |
N/A |
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Standards Used |
N/A |
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
