Thailand to cap diesel prices, sees 2021 GDP growth

[snoop1130]

FILE PHOTO: Electricity Generating Authority of Thailand (EGAT) officials remove a diesel electric generator at Nong Jok power plant in Bangkok, April 27, 2011, before preparing it to be shipped to Japan. REUTERS/Chaiwat Subprasom

 

BANGKOK (Reuters) - Thailand will cap retail diesel prices at 30 baht ($0.89) per litre until the end of the month to help reduce living costs for consumers amid higher global oil prices and a prolonged coronavirus outbreak, its deputy prime minister said on Monday.

 

The short-term support could be extended if necessary, Deputy Prime Minister Supattanapong Punmeechaow, who is also energy minister, told a news conference.

 

"If global oil prices keep increasing, we still have room to manoeuvre," he said, adding prices of some diesel types would be lowered from Tuesday and some from Oct. 11.

 

The subsidy will be financed by an oil fund worth 11 billion baht ($326 million) and a loan if needed, Supattanapong said.

 

Currently, the government has also frozen liquefied petroleum gas prices (LPG) until the end of January.

 

Government subsidies have helped keep headline inflation low, at minus 0.02% in August.

 

The government has also introduced a series of measures to support consumers and businesses affected by the pandemic.

 

After a hit from the outbreak and tougher containment measures imposed in July and August, the economy is improving with higher exports and consumption, Supattanapong said.

 

"Q4 should be a lot better and full-year growth is likely to be positive," he said.

 

Last week, the central bank maintained its 2021 economic growth forecast at 0.7%, while the finance minister expects 1.3% growth.

 

-- © Copyright Reuters 2021-10-04

 

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(Reporting by Kitiphong Thaichareon and Satawasin Staporncharnchai; Writing by Orathai Sriring; Editing by Martin Petty)

[hotchilli]

I guess it all helps.

[jacko45k]

Must remember to fill up on the 30th!

[Scott Tracy]

-.02% inflation is deflation, no?

[topt]

I paid 27.71 at Bangchak last Wednesday for whatever their basic diesel is now. That was 1.6baht per L more than 2/3 weeks prior so seems to be an unusual bit of forward thinking........However I would have expected it to be higher in November from what I read about oil forward pricing?

[Cake Monster]

2 hours ago, hotchilli said:

I guess it all helps.

With Diesel currently at 31.31 Baht / Liter at the pumps, its only a minute drop.

And the drop is only until End October, and with the cost of Oil forecast to rise to about $90 per Barrel, from its current $80, by Year end, it is going to do very little to reduce the Living Costs of the ordinary people.

Once all the Traders and other parties have added on their margins, Inflation will be around 15 % early in the New Year if the Oil prices move as predicted.

[Nong Khai Man]

3 hours ago, jacko45k said:

Must remember to fill up on the 30th!

Well If My Tank was Completely & I FILLED it right Up, I'd gain about 75 Baht......WOW !!

[AhFarangJa]

1 hour ago, Nong Khai Man said:

Well If My Tank was Completely & I FILLED it right Up, I'd gain about 75 Baht......WOW !!

Which you would probably lose in the long run burning more carrying around a full tank of diesel.

[PETERTHEEATER]

Is there a member with an industrial background on the forum who can explain what the cylindrical unit in the OP image is? How does it generate electricity from burning diesel fuel? Why do the Japanese want it? 

[MrJ2U]

7 hours ago, hotchilli said:

I guess it all helps.

I guess.

 

I should have waited to fill my gas guzzling SUV.

[PETERTHEEATER]

7 hours ago, PETERTHEEATER said:

Is there a member with an industrial background on the forum who can explain what the cylindrical unit in the OP image is? How does it generate electricity from burning diesel fuel? Why do the Japanese want it? 

The image is dated 2011. Researching, I found that Japan had requested the loan, from Thailand, of two diesel electric generators to help fill a shortfall on their power grid due to the tsunami of that year. The 'generator' appears to be an industrial gas turbine type presumably run on diesel fuel and that the yellow cylinder in the image is the transit container.

[Sydebolle]

30 years ago you could not spend five Baht; three weeks ago it was 26 Baht, now you're talking 31 Baht. So much to governments and creaming off all that tax money - well, somebody has to pay for the submarines, right?