VIENTIANE (Laotian Times): The Lao government has announced the suspension of imports of most fossil fuel-powered vehicles until the end of 2026 and imposed strict price controls on electric vehicles to ensure affordability.
On 12 May, the Office of the Prime Minister imposed immediate implementation of the directive.
Under the new policy, only passenger vehicles, project and production vehicles, and vehicles for specialized functions are exempt from the import ban.
Authorities have instructed the Ministry to develop a comprehensive price structure covering factory costs, transport, taxes, and profit ceilings for every class and brand of EV sold in Laos.
Companies found to exceed these limits face fines and additional penalties.
“If any company takes the opportunity to raise the price of electric vehicles unreasonably, there will be strict measures to impose fines and penalties,” the notice stated.
Officials acknowledged that the policy shift may disrupt existing automobile importers and ordered a study to mitigate potential losses.
The 2026 directive follows years of incremental policies promoting EV adoption in Laos.
Prior measures included tax incentives, reduced import fees, and fleet mandates for transport operators. Early this year, the government cut EV registration and service fees while increasing levies on fossil fuel vehicles to encourage cleaner alternatives.
The government has also maintained a flexible monetary policy, adjusting interest rates and centralizing state deposits to manage inflation and credit, ensuring that the shift to EVs does not create broader economic shocks.
By controlling EV prices and limiting fossil fuel imports, the government aims to accelerate the transition to sustainable transport, reduce reliance on imported fuels, and strengthen long-term energy security. -- Laotian Times
