Lao gov’t acts to regulate fuel price

A petrol station in Vientiane, Laos. (Photo: VNA)

Vientiane (VNA) - Lao government is taking steps to rein in the rising price of fuel, easing the impact on the economy and the lives of residents, amid a volatile global market.

According to the Domestic Trade Department under Lao Ministry of Industry and Commerce, the government has decided to cut value-added tax from 10 to 7 percent this year and the current oil reserve price to zero kip per litre.

Contributions to the Road Maintenance Fund, collection of import tax, excise tax, value-added tax and income tax, as well as cut costs for oil importers, will be reviewed as part of the efforts to prevent the price of fuel from rising to an unacceptable level.

Authorities warn that businesses that stockpile fuel or raise the price of petrol without government approval will be penalised.

Lao government encourages people to use as little fuel as possible and instead to use public transport or electric vehicles, in order to reduce the amount of petrol imported.

Since the start of this year, fuel prices have risen four times, causing increasing concern about the spiraling cost of consumer goods.

The rising cost of fuel is one of the main drivers of inflation in Laos. The country imported almost 2 billion litres of fuel, worth more than 1 billion USD in 2016./.