Embassy of the Republic of Korea
in the Lao People's Democratic Republic

ㅇ Diesel fuel has been in short supply in Laos since December last year, and the shortage has intensified in January this year, with some petrol stations recently suspending the supply of diesel fuel.

 - As a result, long queues formed at other petrol stations over the weekend, raising concerns about a potential widespread fuel shortage as occurred in 2022.

 - The suspension is only for diesel fuel, and other fuels such as petrol are still available.

 ㅇ The current diesel fuel shortage is due to major refineries in Thailand, Laos' primary oil importer, restricting diesel fuel exports due to refinery maintenance.

 - As of 21 January, Laos had imported a total of 106 million liters of fuel, including 21 million liters of gasoline, 80 million liters of diesel, most of which was imported from Thailand and only about 10 percent from Vietnam due to high transport costs.

 - Recent economic growth in Laos has accelerated the demand for fuel, leading to an exacerbation of fuel shortages.

 ㅇ The Lao Fuel and Gas Association said diesel will be supplied normally from early February, and currently the diesel shortage situation is manageable, but there is a possibility that it may not be able to meet the increasing demand if it continues to increase.

 - The association advises motorists to conserve fuel by avoiding unnecessary travel so that sufficient reserves can be used for essential sectors, including agriculture.

 - The association is also collaborating with the Lao relevant ministries, including the Ministry of Industry and Trade, the Ministry of Energy and Mines, and the Ministry of Foreign Affairs to diversify sources of the country's oil imports, which are largely reliant on imports from Thailand.

 - Meanwhile, the Chinese Government has suggested to Laos to invest in building a logistics system utilizing the Lao-China high-speed railway to import oil from China, but according to the Lao Fuel and Gas Association, it may be challenging to make this feasible due to the high cost involved.

   (Vientiane Times, 2024.1.29.).