Laos orders nationwide fuel inspections amid hoarding concerns


A Lao State Fuel Company station at Sengsawang village, Xaysettha district, Vientiane Capital, Laos. -- Photo: Laotian Times

VIENTIANE (Laotian Times): The Ministry of Industry and Commerce has ordered authorities across Laos to inspect fuel supplies at gas stations and storage depots, following concerns about unstable distribution and possible stockpiling.

An official notice issued on 13 March instructed provincial and district offices to carry out inspections at facilities operated by fuel importers and domestic distributors nationwide.

The move comes after a turbulent two weeks for fuel supply in Laos.

Tensions in the Middle East, which account for over 25 percent of global oil production, disrupted supply chains worldwide from late February, with Laos among the affected countries. Since Laos imports over 97 percent of its fuel from Thailand, the country was particularly exposed.

Between 4 and 10 March alone, diesel prices surged nearly 50 percent, from LAK 21,930 (USD 1.03) to LAK 32,860 (USD 1.54) per liter, while special gasoline recorded the second-highest price increase globally during the same period, according to Global Petrol Prices.

Thailand initially suspended fuel exports following the outbreak of the crisis but granted Laos an exemption, allowing imports to continue. Some stations experienced temporary shortages, which authorities attributed to transportation delays from storage depots rather than an overall supply deficit. On 12 March, the government announced a modest price reduction across all fuel types, with diesel falling to LAK 31,560 (USD 1.46) per liter.

The inspections are the latest step in the government’s response.

Officials will check fuel levels at depots and stations, particularly those that have recently closed or stopped service, and monitor operators for any irregular activity. 

If a station has genuinely run out of fuel, inspectors must review supply contracts with providers and examine delivery and sales records dating back to 1 February to determine whether shortages stem from the station itself or from distribution companies.

Authorities will also verify that gas station operating hours match the schedules displayed publicly at each location.

Companies or stations found violating regulations face formal warnings, suspension of operating licenses, or public disclosure as fuel hoarders.

The ministry has encouraged the public to report suspicious fuel supply activity to support monitoring efforts and maintain stable distribution across the country. -- Laotian Times

 

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