KPL
The Lao People’s Democratic Republic imported more than six billion litres of fuel between 2021 and 2024 to ensure sufficient domestic supply, Prime Minister Sonexay Siphandone told the 10th Ordinary Session of the 9th National Assembly on 10 November 2025.
According to the Prime Minister’s report, total imports comprised over 17 million litres of premium gasoline, 1.26 billion litres of regular gasoline, 4.67 billion litres of diesel, and 144 million litres of kerosene, with an average of 127 million litres imported per month.
Thailand remained the primary source of imports, accounting for 94.03% of the total, followed by Vietnam (4.15%), Singapore (1.22%), China (0.55%), and Malaysia (0.04%).
During the first ten months of 2025 alone, Laos imported 1.63 billion litres of fuel, including 2.6 million litres of premium gasoline, 274 million litres of regular gasoline, 1.34 billion litres of diesel, and 15 million litres of kerosene, averaging 163 million litres per month. Of this amount, 97.54% was sourced from Thailand.
Prime Minister Sonexay said the government had worked to stabilise commodity prices, especially during 2021–2023 when inflation and the depreciation of the kip drove fuel costs sharply higher. Through coordinated measures between central and local authorities, inflationary pressures have since eased.
To further support price stability, the government revised the fuel pricing structure, removing charges such as road maintenance fees, surcharges, and oil fund contributions from the formula. The recent appreciation of the kip has also contributed to lower fuel prices.
On the macroeconomic front, the government has prioritised exchange rate stability, inflation control, and foreign reserve accumulation. Policy coordination from 2021 to 2024 helped reduce inflation from 22.96% in 2022 to 8.3% in 2025, with the October average standing at around 4%.
The exchange rate has also stabilised after sharp fluctuations in 2021–2022, narrowing the gap between official and parallel market rates and easing foreign currency shortages. This stability has enabled the country to secure sufficient foreign exchange for fuel imports and debt repayments.
Currently, Laos’ foreign currency reserves are sufficient to cover five months of imports, exceeding the National Assembly’s target of three months — a development the Prime Minister described as a key achievement in strengthening the nation’s economic resilience.
KPL
