VIENTIANE, Feb. 23 (Xinhua) -- New requirements for companies seeking to import petroleum to Laos are being reviewed or devised after the Lao government made a decision last month to reduce the number of fuel companies from 22 to five.
Those which fail to meet the new requirements will have to halt or be encouraged to turn to other businesses, Lao state-run media Vientiane Times on Thursday quoted Lao Petroleum and Gas Association as saying.
A senior official from the association, Phayboun Phomphaphi, who is also deputy director of Lao State Fuel Enterprise, said on Vientiane Times that the adjustment of the fuel companies is necessary to make it easier for management.
Currently, many fuel companies are too small and might not meet standard requirements, so it was necessary to adjust the figure downwards, he said, adding that over the past years, illegal imports of oil have been reported in Laos and the new adjustment will contribute to addressing the problem.
Four state petrol companies could be adjusted down to one or two; nevertheless more studies are needed to identify the possibility of the adjustment.
However it was not very clear exactly when the adjustment of the fuel companies will take place, the official said.
Last month, the government announced that three companies would no longer be able to transport imported fuel through Laos to third countries. The government also announced that 22 companies that are currently importing petroleum would be reduced to only five in the near future.
The move aims to plug loopholes that could result in illegally imported fuel, according to Lao Deputy Minister of Finance Bounchom Ubonpaseuth, who said that 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 recognised international border crossings. Fuel must not be brought into the country at local border crossings.
Statistics by Lao Petroleum and Gas Association showed that petrol imports to Laos increased by 8 percent annually. However, the association has yet to conclude the oil import figures for 2016. The association assumed that the figure for 2016 should be about 1,300 or 1,400 million liters.
The demand for fuel is on the rise in Laos due to the continued growth of the economy, particularly in the industrial sector. The growth is also translating to a rising number of vehicles on the roads. Some 45 to 50 percent of the fuel Laos imports is used in Vientiane and Vientiane province. Enditem
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