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Local cooking oil firm cuts price
The nation's only cooking oil manufacturer, Sengsavang Food and Plastic Production Company, has reduced the price of an 18-litre can of oil by 10,000 kip.
Although the oil sold for 200,000 kip in November, it went on sale for 230,000 kip in April and is now priced at 220,000 kip.
“The drop in price is not because the global petrol price is down, but because of competition in the marketplace,” a senior official from the company, Mr Sanhti Louangsuvahnavong, said yesterday.
Sengsavang cooking oil is priced at about 12,200 to 13,000 kip per litre for wholesale, which is similar to the price of imported brands. It previously sold for 13,500 kip per litre.
“Some oil is imported legally and some illegally from neighbouring countries but both sell for lower prices at local markets,” Mr Sanhti said.
The oil sells at retail shops for 15,000 to 18,000 kip per litre.
Prior to April, the firm sold an 18-litre can for 250,000 kip and between 16,000 and 18,000 kip per litre because the price of unfiltered cooking oil imported from Malaysia dropped from about US$1,000 per tonne to about US$900.
“The price of unfiltered cooking oil imported from Malaysia remains unchanged so the price fluctuations experienced in Laos are the result of the cost of imported oil and competition in the marketplace,” Mr Sanhti said.
The company is located in Savang village, Chanthabouly district, Vientiane.
Although the company is likely to make a smaller profit, this is offset by the decrease in fuel prices - based on fluctuations in the world market - which have lowered transport costs.
In Vientiane, petrol stations are now selling premium petrol for 11,930 kip per litre, regular petrol for 10,760 kip per litre, and diesel for 9,520 kip per litre. The prices vary by 80 to 300 kip per litre around the country.
Sengsavang imports unfiltered cooking oil from Malaysia, Indonesia, and Thailand then filters it and packages the oil in labelled containers and bottles that are made by the company.
The products, sold under the brand name ‘Somboun', first came on the market in 2000.
Even though prices rise and fall, the company's sales and market share remain stable and output has been increasing every year.
In 2004, the company sold 1.5 million litres, up from 400,000 litres in 2003. This increased by an additional 10 percent in 2005 and another 10 percent in 2006.
Sengsavang currently imports about 5,760 tonnes of unfiltered oil per year.
The oil is mainly sold in Vientiane, with the remainder shipped to provinces nationwide. The company also manufactures plastic drinking water bottles for local supply.
vientiane times
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