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Fuel Overview

The Lao PDR has no proven oil and gas reserves and no oil refinery. All refined petroleum product requirements for transport, household, industrial, commercial, and other applications are imported through Thailand and Vietnam.

In recent years, consumption of petroleum products has outpaced gross domestic product (GDP) growth and increased by more than 8% per year.

The department of Foreign Trade of the Ministry of Industry and Commerce is responsible for researching, planning and implementing policies and the rules and regulations of the government relating to foreign trade, border trade and transit goods; for managing exports and imports; for coordinating with foreign agencies and setting up trade negotiations with trading partner countries to promote exports; for researching and coordinating with economic groups and with international organisations; and for encouraging skills development at provincial level in the trade sector. Import of fuel to get permission license from the Ministry. And fuel price are judged by the Ministry in form of instruction.

For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.6 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. Ministry of Industry and Commerce (MOIC) makes decision on fuel (all types) price based on fluctuation of world oil price. LSFC is delegated by MOIC to adjust (increase or decrease) oil price in form of writing and disseminate it to all oil companied throughout the country. In other words, very private oil company, though import their product separately, to sell their goods at the designed price.

Fuel Prices per Litre as of: Sep 2017

(local currency and USD - $)

Petrol

USD 0.97

Diesel

USD 0.85

Paraffin

Not available

Jet A-1

Not avaialble

Seasonal Variations 

There is very little seasonal variations in the wider fuel market. Due to the fact that some parts of the country are harder to reach during the rainy season, some areas might see a temporary shortage of fuel. Shortage usual lasts a few days to a week or two.

Seasonal Variations

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

Is there a rationing system?

No

Is fuel to lower income / vulnerable groups subsidized?

Yes

Can the local industry expand fuel supply to meet humanitarian needs?

Yes

Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs?

Yes

Fuel Transportation

Most fuel companies have their own fleets for delivery to fuel stations country wide.

There are currently about 16 companies (comprising Lao PDR 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; Asia 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.

Most companies have fuel depots in the major cities. The Lao State Fuel Company ((LSFC), a 100% state owned company under Ministry of Industry and Commerce (MOIC)), has dominated the market share over the years (about 30%).  

LSFC has branches in every major province, fuel depots and warehouses with a total capacity of 26 million litres, laboratory, and 326 gas service stations throughout the country. In addition, LSFC has also additional business units, namely a modern transport fleet with a number of over 140 trucks, tank welding factory, fuel infrastructure construction unit, Jet fuel service, and LPG cooking gas service

Standards, Quality, and Testing

Information on standard, quality, and testing is very limited. This is the result of the general lack of freedom of information in all sectors of society. Given the strategic and national security issues revolving around fuel information is not availed and standards are not shared. However 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 Lao.