Laos experiencing a petrol crisis due to high inflation

The Lao government denied there was a national petrol crisis despite calling an emergency meeting and hours’ long queues witnessed throughout the country’s filling stations.

The government, who import the majority of its petroleum from Thailand, scheduled an emergency meeting to discuss the country’s inflation, panic buying and why a large number of petrol stations were closed last week in Laos.

“I assure you that my company and the Lao Fuel and Gas Association will provide enough fuel supplies, there will be no shortage,” Chanthone Sitthixay, president of Petroleum Trading Lao Public Company, insisted in a public address.

PTT Oil and Retail Business, a Thai petrol company with 53 stations in Laos, planned to supply gasoline as normal, according to senior marketing officer, Songpon Thepnumsommanus.

“In some instances where there are many customers, there may be some gaps, but we will try to manage the situation.”

Petroleum importers are finding it difficult to match increasing demands due to a weakening kip currency because of high inflation, and an unpredictable global oil industry. But the Lao government dismissed the problem last week and urged the public not to worry.

A local resident, Kham Goodman, disagreed on social media, posting videos of people queuing to fill up bottles with petrol.

Laos is one of the poorest countries in Southeast Asia, with a population of over 7 million people, and is aiming for 4% annual economic development to 2025.

SOURCE: Bangkok Post