Thailand
Laos: Gov’t Suggested To Use Reserve To Calm Down Rising Fuel Prices
(KPL) Economists have suggested it may be the time for the government to use its foreign reserve to ease rising fuel prices warning that implications from the rising prices could be high inflation.
Ms Valy Vethsaphong, member of National Assembly for Vientiane said at the 5th Ordinary Session of the National Assembly on Monday that the Bank of the Lao PDR should use some amount of money in the national reserve to prevent fuel prices from reaching too high level or from fluctuating in response to global oil prices.
“Currently, oil prices in the world market reach US$ 70 per barrel and those of ready-to-use fuel in Singapore have already reached US$ 80 per barrel. However, with rising oil prices in the world market, it is likely possible that the fuel price in the country will increase,” said Bank of the Lao PDR Governor Somphao Faisith.
“If fuel prices exceed US$ 80 per barrel, the Bank of the Lao PDR will discuss with the government, the Ministry of Finance and relevant sectors or, in case of necessity, deduct money from the national treasury to ease the situation. The treasury is limited and we must use it carefully otherwise our economic system will be affected,” said the governor.
“So far, some of our reserve has been already added to the state budget every year and now our reserve is extremely limited. If oil prices in the world market continue to increase, we have no way but to let the situation happen,” said Minister of Finance Somdy Douangdy.
Source: http://kpl.gov.la/En/Detail.aspx?id=35352