The Industry and Commerce Department of Laos reported that the rise in the price of crude oil in the world market to more than 115 dollars a barrel last week had forced the Lao government to approve another round of fuel price hike.
Before the adjustment, the price of super-grade gasoline in Vientiane and the surrounding areas was 11,040 kips per liter, while regular gasoline cost 10,460 kips per liter and diesel fuel cost 9,330 kip per liter; the latest price increase is a little more than 2 percent.
Laos imports all of its fuel from foreign countries, especially from Thailand and Vietnam. Total imports in 2007 totaled more than 400 million liters. Fifty-five percent of imported fuel is diesel, and that will have a direct impact on Laos economy, including production and transportation costs which will translate into price increase for all consumer goods and services.
A Lao government employee said the problem her family and low-income people in Laos are facing is high price, and if the price of goods and services continue to rise, it will certainly have severe impacts on their lives.
Listen to our Laos Today for more details in Lao.