VIENTIANE, Jan. 29 (Xinhua) -- Lao government has announced that three companies will no longer be able to transport imported fuel through Laos to third countries, in a bid to plug loopholes that could result in illegally imported fuel.
The government has instructed the Ministry of Finance to inform the three companies, namely LS Import-Export Trading Company, Sichanthongthip Import-Export Company, and the International Transport Company, to stop this form of transport, reported Lao state-run Vientiane Times on Sunday.
Lao Deputy Minister of Finance Bounchom Ubonpaseuth said that the ban was only imposed on companies that imported fuel into Laos for further export. The main reason for stopping this is to address the loopholes that some companies might take advantage of in the transit shipment of oil through Laos, by illegally selling it for local consumption, he said, adding that the halt would make it easier for authorities to manage the oil imported into Laos.
He said the 22 companies that currently import petroleum would be reduced to only five in the near future. Only companies that comply with the country's laws and government's obligations will be permitted to continue to operate.
According to a government report, petrol must only be imported across officially recognized international border crossings. Fuel must not be brought into the country at local border crossings. The government also instructed the Ministry of Industry and Commerce to review the number of fuel companies and report their findings.
The government stressed the need to inspect the quality of imported fuel but did not want to create obstacles or delays for those that followed the country's laws and requirements.
In August of 2016, Lao government announced that it was ending fuel tariff exemptions in a move to close loopholes in the import of oil. The move was part of the government's efforts to ensure that fuel imports are in line with the country's laws and to close all gaps that allow investors or project developers to take advantage of fuel tariff exemptions.
According to Vientiane Times, there is no official report on the exact quantity of oil imported for use in Laos.
In 2013, Laos imported about 1,000 million liters of fuel. Some 45 to 50 percent of the fuel Laos imports is used in capital Vientiane and Vientiane province, according to the Lao Petroleum and Gas Association.
