|
Govt reduces fuel prices
The Ministry of Industry and Commerce yesterday announced a drop in fuel prices for the first time this year, to come into effect in Vientiane and five provinces from today.
The price of petrol in Vientiane has dropped by 160 kip to 260 kip per litre, and in the five provinces of Khammuan, Savannakhet, Champassak, Bokeo and Xieng Khuang by 170 to 270 kip per litre, according to a report from the ministry's Price Planning and Marketing Division yesterday.
In Vientiane, petrol stations are now selling premium petrol for 12,020 kip per litre, regular petrol for 10,840 kip per litre, and diesel for 9,800 kip per litre.
The fuel prices in the five other provinces vary depending on transport costs, with premium petrol ranging between 12,040 and 12,160 kip per litre, regular petrol 10,880 and 11,110 kip per litre, and diesel 9,850 and 10,120 kip per litre.
Fuel prices fluctuate depending on shifts in the global market. The lowering of fuel prices in Laos is in line with a reduction of the price of oil in world markets, the report noted.
There were 14 fuel price adjustments by the ministry last year, 10 of which were increases. That followed 15 adjustments in 2009, of which 11 were price rises.
There have been nine adjustments this year but yesterday's is the first downward adjustment.
Singapore AP reported yesterday that oil prices rose to near US$100 a barrel in Asia, continuing two weeks of seesaw trading as investors anticipate the possible end of the aggressive US monetary stimulus that has weakened the US dollar.
The oil prices have gyrated sharply since touching a 30-month high of almost US$115 on May 2, the report noted.
According to the Brunei Times recently, the price of crude oil will hit US$120 a barrel this year.
According to the Lao Petroleum and Gas Association, oil was at about US$78 per barrel in January last year and fell to about US$75 by the middle of the year. But it rose to US$89 per barrel by the end of last year.
Fuel consumption in Laos is expected to rise to more than 750 million litres this year, amid spiralling global oil prices. Consumption increases about 7 to 10 percent each year.
Laos used over 640 million litres in 2009 and more than 700 million litres last year. About 45 to 50 percent of the fuel Laos imports is used in Vientiane and Vientiane province.
Vientiane times
|
