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Cooking oil firm cuts price again
The nation's only cooking oil manufacturer, Sengsavang Food and Plastic Production Company, has sharply reduced the price of its 18-litre cans of oil.
“We adjust the price every month due to market competition,” a senior official from the company, Mr Sanhti Louangsuvahnavong, said yesterday.
The price of an 18-litre can of oil was 220,000 kip in June and is now only 150,000 kip, Mr Sanhti said.
Although the cans sold for 200,000 kip last November, the price increased to 230,000 kip in April but is now cut by 70,000 kip from the price in June.
He said the price drop is not only attributable to the decline in the global petrol price, but also to increased competition in the marketplace.
Many cooking oil products are imported both legally and illegally from neighbouring countries and sell for lower prices at local markets
Sengsavang cooking oil was priced at about 12,200 to 13,000 kip per litre for wholesale in June, which was similar to the price of imported brands. Prior to that, it sold for 13,500 kip per litre.
“Now we sell 12 bottles for only 110,000 kip, with each bottle containing 1 litre of oil,” he said.
Currently the oil retails for about 10,000 to 12,000 kip per litre; however, it was as high as 18,000 kip prior to April.
The price fluctuations experienced in Laos are the result of the cost of imported oil and competition in the marketplace.
Sengsavang Food and Plastic Production Company is located in Savang village, Chanthabouly district, Vientiane.
Although the company is likely to make a smaller profit from lowering its prices, this is offset by the fuel prices - based on fluctuations in the world market - which have lowered transport costs.
Sengsavang imports unfiltered cooking oil from Malaysia, Indonesia, and Thailand, then filters it and packages the oil in labeled 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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