Laos slashes EV fees, hikes petrol car charges to curb fuel use

"Laos will cut registration and service fees for electric vehicles (EV) by 30 per cent while raising charges for fuel-powered cars by the same amount, under emergency measures aimed at reducing fuel consumption during a worsening energy crunch. The directive also requires transport companies to ensure electric vehicles account for at least 10 per cent of their fleets by the end of 2026 and calls for import procedures for EVs to be simplified and made less costly."

"Between 4 March and 10 March alone, diesel prices surged nearly 50 per cent, jumping from LAK21,930 (US$1.03) to LAK32,860 (US$1.53) per litre. Special gasoline recorded the second-largest increase globally during the same period, according to price tracker Global Petrol Prices."

"The country imports more than 97 per cent of its petroleum products from neighbouring Thailand, leaving it highly exposed to supply disruptions. The risks became clear when Thailand briefly suspended fuel exports after Iran closed the Strait of Hormuz in late February, triggering panic buying that emptied petrol stations."

Laos has enacted emergency measures to combat an energy crisis triggered by Middle East turmoil affecting global fuel supplies. The government will reduce registration and service fees for electric vehicles by 30 percent while increasing charges for fuel-powered cars by the same amount. Transport companies must ensure electric vehicles comprise at least 10 percent of their fleets by end of 2026. Government agencies are prohibited from purchasing new fuel-powered vehicles for administrative use unless essential. Authorities are extending the bus rapid transit network in Vientiane. Additional measures include reduced ministerial travel, remote meetings, and rotating work shifts. Diesel prices surged nearly 50 percent between early March, jumping from LAK21,930 to LAK32,860 per liter. Laos imports over 97 percent of petroleum products from Thailand, creating significant vulnerability to supply disruptions.

Read at Eco-Business