- Business

Ministry of Industry and Commerce to speed up oil price adjustment

The Ministry of Industry and Commerce has said it will adjust oil prices earlier by announcing oil price adjustment 5-7 days after the world market announces its oil price change rather than currently 15 days.

“As for the issue, relevant authorities will attach importance to seeking solutions including reducing the national road management fund, and adjusting revenue and taxation rates according to fluctuating oil prices to ensure oil prices are adjusted step by step and in a systematic manner,” said Minister of Industry and Commerce Khampheng Xaysompheng.

Oil prices in Laos are determined by fluctuating prices in the world market which has kept rising since the beginning of 2022.

Oil prices have been adjusted six times since the beginning of 2022 with the latest one announced on Mar 10. The current oil prices place premium petrol at 18,640 kip per litre, regular petrol at 16,380 kip, and diesel 14,510 kip per litre.

The oil production limit by the Organization of the Petroleum Exporting Countries (OPEC), economic conflicts among world powers, and Russia-Ukraine conflict have led to a rise in oil prices in the world market with diesel reaching to 150 – 180 US$/barrel, the highest rate in a decade.

“In a meeting held last month, OPEC members agreed to increase oil production by 400,000 barrels per day,” said Minister Khampheng. “However, if economic and military conflicts remain, oil prices will continue to rise.”

Source: Lao News Agency