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by Michael Bridge

Prices have skyrocketed around the world due to the Ukraine crisis, with the average price of gasoline around the world is US$1.29 per liter.

Here in Thailand according to statistics, from 20-Dec-2021 to 28-Mar-2022, the average value during that period was 43.12 Thai Baht with a minimum of 38.53 Thai Baht on 20-Dec-2021 and a maximum of 47.85 Thai Baht on 28-Mar-2022. 

Therefore, we are currently paying an average of US$1.42 per liter. 

All countries have access to the same petroleum prices of international markets but then decide to impose different taxes.

Out of the 170 countries/regions listed, forty-five have a price below 1 USD dollar. Seventy-four have between $1.00-$1.50, 25 have between $1.50-$2.00, and twenty-six have over $2. Prices are as per the date 07 Mar 2022.

Venezuela has the cheapest price, just $0.03 per liter, followed by Libya ($0.03) and Iran ($0.05). Among the top ten cheapest, four countries are located in Asia and Africa each, and one each in South America in Europe. Hong Kong has the most expensive price of $2.83, followed by Norway.

 

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Crude Oil

The cost of crude oil is the largest component of the retail price of gasoline or petrol. 

Recently, the price of WTI crude oil has been $120-$121 a barrel. In the worldwide oil industry, an oil barrel is defined as 42 U.S. gallons, which is about 159 liters. 

This calculates the price of crude oil to $0.75-$0.76 per liter. Taxes and subsidies, cost of refining and transporting, commission, etc., are included in retail price.

The average price of gasoline around the world is 1.29 U.S. Dollars per liter. 

As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. 

The differences in prices across countries are mainly due to the various taxes and subsidies for gasoline. 

All countries have access to the same petroleum prices of international markets but then decide to impose different taxes.

Currently when Thailand’s average price per litre was US$1.42, in Vietnam the average was US$1.19, Cambodia US$1.31, the Philippines US$1.43 and Malaysia US$0.49.

This week the Philippines government said that Filipino consumers can expect lower fuel prices this week.

 

This is amid hopes of resolving fighting prompted by Russia's invasion of Ukraine and other developments affecting the global oil market, where the Philippines mainly gets its supply.
 
This marks the second time this year that fuel prices went down in the Philippines. 

 

Therefore, it becks the question why are we not seeing pump prices in Thailand dropping too?

 

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Well the Australian government reduced the exice on petrol by half for 6 months

 

the duty on fuel can be reduced by the government, but there is no surety that the petroleum companies will pass this reduction on to the customers

Why can’t the Thai government reduce the prices at the pumps?

 

 

 

 

 

 

they could if certain people stopped stuffing billions into the pockets 

If the Thai Government reduce the taxes on fuel further then there will be a problem meeting there annual budget .

There so called oil fund which is subsidizing diesel prices is actually borrowed money by the state .

Any further cuts will mean borrowing more money .

Park the pick up and get on the motorcycle is the best way to reduce expenditure on fuel .

Reduce speed limits could be a great idea for Thailand with a double barreled affect of saving energy and lives at the same time .

11 minutes ago, itsari said:

Reduce speed limits could be a great idea for Thailand with a double barreled affect of saving energy and lives at the same time .

Nice idea, but do they pay attention to them at all.......  rarely seem to be policed in my area. 

7 minutes ago, jacko45k said:

Nice idea, but do they pay attention to them at all.......  rarely seem to be policed in my area. 

 

7 minutes ago, jacko45k said:

Nice idea, but do they pay attention to them at all.......  rarely seem to be policed in my area. 

They could try pounding the vehicles caught speeding using the Thai Governments  emergency powers that they have at the present time .

Park the pounded vehicles at the hospitals as there would be less demand for visiting the road casualties .

I see no easing up on the throttle of the trucks in my area when it was the truck drivers bosses  that campaigned for the capping of the diesel price . 

 

I was hoping the article would be giving an explanation rather than dragging up the old questions people have been asking for years. Many of these daily articles just seem to be regurgitated news. 

13 hours ago, smedly said:

Why can’t the Thai government reduce the prices at the pumps?

 

 

 

 

 

 

they could if certain people stopped stuffing billions into the pockets 

They have diesel and reduced the tax by 50%

Why can’t the Thai government reduce the prices at the pumps?

They already do... but not enough to appease the Thais who want it for nothing.

1 minute ago, hotchilli said:

Why can’t the Thai government reduce the prices at the pumps?

They already do... but not enough to appease the Thais who want it for nothing.

I know they have fixed the price of standard diesel, reducing the tax on it. But has there been anything similar on other fuels?

Just now, jacko45k said:

I know they have fixed the price of standard diesel, reducing the tax on it. But has there been anything similar on other fuels?

The government needs to maintain a tax income from somewhere to help pay for all the other relief measures... fuel is a good place to hit millions.

Because fuel companies have more power than the government.

 

5 hours ago, webfact said:

and Malaysia US$0.49.

 Did not know Malaysia gas prices are so cheap. 

Quote

an oil barrel is defined as 42 U.S. gallons, which is about 159 liters. 

This calculates the price of crude oil to $0.75-$0.76 per liter. Taxes and subsidies, cost of refining and transporting, commission, etc., are included in retail price.

The average price of gasoline around the world is 1.29 U.S. Dollars per liter. 

 

A barrel of oil is not refined into 42 gallons of gasoline.

 

"On average, U.S. refineries produce, from a 42-gallon barrel of crude oil, about 19 to 20 gallons of motor gasoline; 11 to 13 gallons of distillate fuel most of which is sold as diesel fuel; and 3 to 4 gallons of jet fuel. More than a dozen other petroleum products are also produced in refineries including liquids the petrochemical industry uses to make a variety of chemicals and plastics."

1 hour ago, hotchilli said:

Why can’t the Thai government reduce the prices at the pumps?

They already do... but not enough to appease the Thais who want it for nothing.

Because they don't know how to stop Thais emptying their tanks to get one place ahead at the red traffic light which they only spotted when they were 20 metres away.

They can by adding congestion charge to the ticket of tourists. As we all know Tourists are what create congestion, hence more petrol consumption so Falang need to pay!

To the extent that a boycott of Russian oil feeds into the high prices here, I am glad to do my part if it will help bring the war to an end.

I’d venture diesel useage vs gasoline is a higher average % here compared to much of the West (ubiquitous pickup  and commercial vehicles),so at 30 baht per litre I’m thankful compared to the almost 3x the price I’d be paying in UK ! The much higher preponderance of scooters and their low consumption of gasoline also is an advantage. If I was buying a new vehicle (SUV?) I might still opt for diesel on that basis despite its demonisation and tumbling sales in Europe. 

1 hour ago, hotchilli said:

Why can’t the Thai government reduce the prices at the pumps?

They already do... but not enough to appease the Thais who want it for nothing.

Maybe if Thais paid more income tax they could reduce gas prices.

Quit nagging , if you like lower price go somewhere else .... IMHO prices are fabulous , they are crazy low .

people will give you all kind of chess playing move, telling us its hard for us to understand, but the fact is just GREED

I have never paid more than 40 baht a litre in Thailand (i use E20). I doubt that many pay more than that either. Oil is a precious resource and should not be cheap, it should not be wasted on non-essential uses - should be used for transport only, and even then only when other energy sources are not practicable.

 

Price is fine as far as i am concerned.

Surely it should be "why SHOULD the Thai government reduce the prices at the pumps?". Well for certain sectors such as essential services and agriculture that's a good idea and diesel already has been reduced by way of tax cuts. The government cannot control the price of oil nor sensibly force retailers to make a loss (or reduce reasonable profit). Nobody was complaining when diesel was 17 Baht/Litre in May 2020 when a barrel of oil was virtually worthless. It's the open market. One thing for sure that also affects Thailand's tourism economy and many of us on TVF is that our plane tickets in and out are unlikely to ever be the bargain they once were (although many would never concede that plane travel was often underpriced). Who else remembers the days when fuel was 12 Baht/Litre and the exchange rate was 76 Baht to 1 GBP? 

Same as most Countries  quick to increase the price ????

But slow to cut it when the cost is reduced ????

No change there 

Thailand has some of the most expensive gas in the world.
So it helps having a car that gets 23 km/liter.

Perhaps it would help the average motorist to lower their expenditure for vehicle fuel if they didn't need to jump on their motorbike or in their car for each and every god-da*n trip to the mom-and-pop store or "kap-khao" stall just 150 meters down the soi. 

Prices at the pump matter little by themselves...

It is all about what the average salary can buy.

 

For example, Australia may very well has 2x higher fuel prices,

But flipping a burger at MaccyD won't get one 50thb /hours, but 300+, or 6x or more...

 

Which worker can buy more fuel from the salary?

 

The rich counties are pretty much all the cheapest ones if use a similar comparison, be that gasoline, food, or cloths.

 

So here is the big question:

Why can't large international corporations pay similar salaries to their workers doing the same job?

Why can't governments demand that?

 

1 hour ago, vandeventer said:

Maybe if Thais paid more income tax they could reduce gas prices.

They would probably be happy to pay income tax if they had an income above the poverty line.

unfortunately, this is exactly where the military government wants the majority to be so they are unable to realise just how manipulated and abused they are.

The current price for Gasoline at the pump is probably arrived at when the Crude Oil for making it was only about 80 $ a Barrel.

The cost now is about 110 $ a Barrel.

If the cost now was reduced in any way, how are the Gov,t to pay for any future Crude Oil at the higher price.

They are already subsidising at the pumps, as well as the purchase of future Crude Orders.

Owning a Vehicle has never been cheap, and when the price of Gasoline goes up, well you just have to suck it up as well.

As the saying goes,   " If you cant afford to keep it on the Road, you should never have bought it "