Petrol Prices In Thailand

[midas]

I don't own a car in Thailand but I am intrigued as to how petrol prices don't seem

to be much of a problem here even with oil now at 84 dollars per barrel ?

In the USA I believe petrol is about $3 per gallon and its gradually having a serious effect

on the spending ability of households.

How come it doesn't seem to be having the same sort of effect in Thailand

where I would've expected a more pronounced effect on spending patterns i.e.

people don't seem to be cutting back on their car journeys ?

[NovaBlue05]

Here in eastern US, gas has been fluctuating between $2.50 and $3.00 a gal for about 3 years now and sits at $2.65 now. I was surprised that gas in Thailand is more expensive than here at home. I would think the salary structure there wouldn't support it. They must be spending a sizable amount of their salary on petrol.

[LaoPo]

Here in eastern US, gas has been fluctuating between $2.50 and $3.00 a gal for about 3 years now and sits at $2.65 now. I was surprised that gas in Thailand is more expensive than here at home. I would think the salary structure there wouldn't support it. They must be spending a sizable amount of their salary on petrol.

That's still very cheap in comparison to the price of 95 Gas/petrol in a lot of EU countries.... some countries in EU are even more expensive; just a few a little less but still a LOT more expensive than in the US...

Example: The average price in industrialized EU countries is between EU 1,30 and 1,45/liter or EU 4,92/Gallon and that's US$ 6.89/Gallon or EU 5,49 = US$ 7,68/Gallon...

So, the Americans can't complain, can they ?

1 US Gallon = 3,785411784 liters

LaoPo

[JonnieB]

Here in eastern US, gas has been fluctuating between $2.50 and $3.00 a gal for about 3 years now and sits at $2.65 now. I was surprised that gas in Thailand is more expensive than here at home. I would think the salary structure there wouldn't support it. They must be spending a sizable amount of their salary on petrol.

The price of crude oil is the same around the world and is generally still priced in US dollars. The price of refined petroleum products in Thailand (e.g., gasoline and diesel fuels) is about the same (roughly as the USA). One factor that has kept the price down somewhat is the strength of the baht vs. the dollar. Because of this, it takes less baht to buy a barrel of crude oil (about 17% less than a year ago)...thus saving thailand and Thai consumers some money.

It's interesting to note that there is a correlation between oil prices and the Thai stock market. About 30-35% of the value of the SET represents shares of oil production and refining companies (PTT being a big one). THerefore, as oil prices hit a new high recently you may also have noted so did the SET.

As to the high cost of petrol not effecting driving habits...I guess it's just like everywhere else, people need to get places and many times public transit is not a viable option. And even if it is, for many in Thailand, owning a car and being able to drive it is a sign of status and they will economize on other things before they cut back on using the car.

[NovaBlue05]

Here in eastern US, gas has been fluctuating between $2.50 and $3.00 a gal for about 3 years now and sits at $2.65 now. I was surprised that gas in Thailand is more expensive than here at home. I would think the salary structure there wouldn't support it. They must be spending a sizable amount of their salary on petrol.

That's still very cheap in comparison to the price of 95 Gas/petrol in a lot of EU countries.... some countries in EU are even more expensive; just a few a little less but still a LOT more expensive than in the US...

Example: The average price in industrialized EU countries is between EU 1,30 and 1,45/liter or EU 4,92/Gallon and that's US$ 6.89/Gallon or EU 5,49 = US$ 7,68/Gallon...

So, the Americans can't complain, can they ?

1 US Gallon = 3,785411784 liters

LaoPo

Certainly not complaining from my end. As I understand it, most of the cost associated with petrol in the EU is tax(?). My curiousity was in how the Thais were affected...given their incomes. I suppose that they can live and eat cheaply though so most of what they earn can be put into truck payments and petrol.

[sonicdragon]

My 2c -

- Very poor thais use public transport, which is very cheap and reasonably efficient, and public transport costs have not in general risen very much.

- "Average" thais use small engined motorcycles so the cost of filling up with fuel, while more expensive than it was, is still relatively affordable.

- Middle class thais often drive pickups and SUVs and they do feel the increased cost, but as JonnieB pointed out the strength of the local currency has helped dampen the effect, and these thais also understand it is a global phenomenon so they just have to eat it.

- Wealthy thais don't care, it's just a rounding error for them.

Obviously there are groups of people who care a lot - for example taxi drivers and drivers of privately owned public transport (baht buses, songthaews, tuk tuks etc) and they are sometimes quite vocal about it affecting them.

[Iolare]

Do I remember correctly that a few years ago during a period of a global petroleum price run up that the Thai government subsidized retail prices in the country and significantly depleted the treasury before giving up and letting prices suddenly rise to market?

Now that I live in the country, I’ve been wondering if the government still sets and controls the retail prices because I haven’t noticed any retail price competition among filling stations.

[asiaexpat]

I don't own a car in Thailand but I am intrigued as to how petrol prices don't seem

to be much of a problem here even with oil now at 84 dollars per barrel ?

In the USA I believe petrol is about $3 per gallon and its gradually having a serious effect

on the spending ability of households.

How come it doesn't seem to be having the same sort of effect in Thailand

where I would've expected a more pronounced effect on spending patterns i.e.

people don't seem to be cutting back on their car journeys ?

[asiaexpat]

Taxis and many personal autos are run on LPG which is much more cost effective and cleaner.

[Thaicoon]

In the UK now the prices are crazy, where i am in a rural part of Wales, unleaded 1.04 GBP per litre, fuel in Thailand is dirt cheap to us westerners, but not to the Thais.

[sonicdragon]

Do I remember correctly that a few years ago during a period of a global petroleum price run up that the Thai government subsidized retail prices in the country and significantly depleted the treasury before giving up and letting prices suddenly rise to market?

Now that I live in the country, I've been wondering if the government still sets and controls the retail prices because I haven't noticed any retail price competition among filling stations.

You are not mistaken. Fuel was subsidised for some time, from early 2004 I think, and the subsidies were removed progressively by the previous government in the face of escalating prices, in mid 2005 I believe.

I believe the current situation is a kind of cartel, with PTT (government owned) tending to lead the way.

[cclub75]

Some new charts are available here (gasoline + diesel consumption etc.).

Meanwhile, the situation is worsening. Gasoline reached a all time high at 30.30 THB per liter today.

The thai authorities try, in a pathetic way, to gain one week... before to increase the price of diesel !

"PTT Plc will withold another increase of retail diesel price, fearing that the increase within this week would further disturb consumers who have suffered from higher product prices" (Nation)

You have to understand : PTT doesn't make business... they just try to help people.

What ? PTT is listed on the SET ? Too bad.

[Sophon]

- Very poor thais use public transport, which is very cheap and reasonably efficient, and public transport costs have not in general risen very much.

I don't agree with that statement. The cheapest non air conditioned red and cream buses in Bangkok were Baht 3.50 five years ago, with the latest price increase they are now Baht 8.50. That's an increase of 143% over five years.

Sophon

[sonicdragon]

- Very poor thais use public transport, which is very cheap and reasonably efficient, and public transport costs have not in general risen very much.

I don't agree with that statement. The cheapest non air conditioned red and cream buses in Bangkok were Baht 3.50 five years ago, with the latest price increase they are now Baht 8.50. That's an increase of 143% over five years.

Sophon

I said "in general" ! ! ! ! ! ! ! ! ! Quoting a specific case of a large increase does not invalidate the statement.