Benzene May Hit 45 Baht Per Liter & Diesel Could Hit 38 Baht Per Liter In The Next Few Days

[slapout]

I believe Winmark (and associates) was mentioned in relation to T and suffling of shares and or other dubious activities. It would be too good to be true if this is the same company but then again what do you expect from the boys at the trough, make a contract, (even as you are leaving office) get yours up front, set on the sidelines later and watch the thing unfold. One of the most far thinking ones out the whole bunch was Vatanna in that he built the (retirement for runners complex) across the border. When you consider the present price of diesel at the Thai pump, the ex-refinery price in the real world, various grades of diesel, and the past record of the man doing the deal, the quality control in Russia, it may be one of the better plums to come along in a while. Maybe he can work a deal for a pipeline from Russia to Thailand, with approval of course (with the odd gift or two) of the countries thru which it will trespass. (be sure Burma is on the route)

[sriracha john]

Just to be clear, I was just kidding about WinMark (which, indeed, was Thaksin's shill company to illegally hold Shin stock whilst PM)...

but still, just the same, I trust Samak and his "appointing a private company" about as far as I could throw the overweight cook.

Just how much baht is there to be made skimming off 300,000 tons of diesel? (an unfamiliar unit of measurement for a liquid to me... or is it just so sludgy that it's formed into solidified blocks?)

and yes, Vatana had some great foresight to buy not 1, but 2 resort casinos on the border. His Golden Diamond Resort for Runners might be getting quite a bit of business with the other court cases coming up in the next few weeks. He will, however, be in direct competition with Thaksin's Golden Square Head Casino and Resort in Cambodia's Koh Kong.

Edited July 14, 2008 by sriracha john

[slapout]

John; like your sense of humor. Dobt if T and the PM would be very successful working any venture together. It is hard to do business if both partners are always walking backwards. (have to keep each other in sight, for those who are not familiar with the saying)

[sriracha john]

Cabinet To Mull Cutting Retail Oil Products Excise Tax

BANGKOK -(Dow Jones Newswire / 14-07-08)- Thailand's Cabinet will Tuesday consider cutting the excise tax on retail gasoline and diesel, said Finance Minister Surapong Suebwonglee.

Edited July 14, 2008 by sriracha john

[sriracha john]

oh well, it was a nice pipe(line) dream while it lasted....

False hopes

The claim by PM Samak that he has found a source of cheap Russian diesel raised eyebrows at local oil companies, where experts say high transport costs and low quality could even make inferior Russian diesel more expensive than what's on the market now. Samak announced that he had successfully negotiated to buy diesel at 8 baht a liter cheaper than local prices from Russia, at a rate of 300,000 tonnes per month. Energy Minister Poonpirom Liptapanlop said more details would be announced together with the new economic stimulus package on Tuesday. The package includes a 55-satang cut in the gasohol E85 excise tax from 2.50 baht a liter planned earlier, together with reductions for all other fuel types. However, local oil executives cast doubt on the Russia deal, pointing out that Thailand rarely imported crude from Russia in the past because the long distance resulted in steep freight costs. PTT discussed a possible supply deal with the Russian gas giant Gazprom two years ago. Prasert Bunsumpun, PTT's CEO, said Russian firms should establish Thai refining because their prices would never be competitive in this region otherwise. Manoon Siriwan, an energy expert and former deputy managing director of Bangchak Petroleum, agreed that eight baht a liter cheaper seemed too good to be true. Given taxes and transport costs, the price of imported diesel may be no different from domestic diesel, which now sells for 44.24 baht a liter. Diesel imported from Russia has a high sulphur content of up to 0.05 per cent while Thailand requires domestic diesel to have maximum sulphur of 0.035 per cent. As well, the Euro 4 standard, which the government is adopting, will require all fuel sold in Thailand to have sulphur content of no more than 0.005 per cent by 2012. An executive of an oil refinery pointed out that Russian diesel did not meet the government's Euro 4 goal. "If the government accepts high-sulphur diesel from Russia, we have to export our locally made high-quality diesel abroad." Anusorn Sangnimnuan, the president of Bangchak Petroleum, also doubted the possibility of the Russian deal. "Buying oil from Russia is not new, but

Continued here:

http://www.bangkokpost.net/topstories/tops...s.php?id=128866

============================================================================

Perhaps they could have the Interior Minister set up another marijuana-fueled brainstorming session to come up with a different plan...

Edited July 15, 2008 by sriracha john

[sriracha john]

False hopes and misrepresentation and viability and credibility aside....

Cabinet approved 'in principle' diesel import from Russia

Prime Minister Samak Sundaravej says the Cabinet meeting has already approved 'in principle' the import of low-priced diesel from Russia.

The premier says the oil will be imported via 200 cooperatives across the country and affirms the oil will not be sold in Bangkok. Low-priced diesel from Russia will be distributed at eight baht lower than the market price to fishery cooperatives and transport cooperatives in other provinces except for Bangkok.

15 days after the cabinet approved the diesel import in principle, it will prepare documents for the import and Russia will ship the oil to Thailand 45 days later. The oil will be tested by laboratories before distribution.

- ThaiNews

===========================================================

How many liters in a ton of diesel?

Multiplied by 300,000, multiplied by 37 baht, multiplied by every month = some serious potential for some hefty corruption.

Edited July 15, 2008 by sriracha john

[soundman]

How many liters in a ton of diesel?

Multiplied by 300,000, multiplied by 37 baht, multiplied by every month = some serious potential for some hefty corruption.

300,000 tons = 300,000,000 kg's / 0.72 (approximate SG of diesel fuel) = 416,666,666 litres x 37 Baht epr litre = 15,416,666,420.00 Baht.

15 Billlion minus 10% cut for the administartors of the deal = new casino paid for by the Thai people because of the gullible voters who put the current government in power.

PS. somebody check those figures. - maybe I'm out by a magnitude of ten!

[sriracha john]

holy crapola... 15 big ones .... PER MONTH???

no wonder they're rushing this one through... first kickback payment will begin in just a little while...

-------------------------------

btw, thanks for the math, soundman...I hadn't a clue. It's no wonder you're a business genius and I'm not...

[sriracha john]

Cabinet approves Russian diesel; cuts diesel excise tax

BANGKOK, July 15 (TNA) - In an attempt to cushion the impact of soaring oil prices affecting consumers, the Thai government Tuesday gave the green light to import low-priced diesel from Russia and to lower excise taxes on gasohol and diesel.

Prime Minister Samak Sundaravej told a press conference that his cabinet had approved importing diesel from Russia at Bt8 per litre less than the current retail price here. The first shipment of Russian-refined diesel will arrive in Thailand within the next 45 days and will be sold to 200 cooperatives nationwide.

Thailand will import diesel from Russia which contains sulphur some 0.02-0.5 per cent at about 300,000 tonnes monthly and importers will need to stock about 100,000 tonnes for reserve monthly, he said. Domestic diesel now contains maximum sulphur of 0.035 per cent.

No tax or excise tax would be lowered for the Russian diesel imported to Thailand, said Samak.

Russian-produced diesel is now sold widely in South Korea, China, Vietnam, the Philippines and Cambodia, he said , adding that truckers who are members of cooperatives members will enjoy this special privilege due to its low price on a continued basis.

Local refineries will be offered only Bt3 per litre lower than the pump price and the assistance given to them lasts only three months.

Meanwhile, Energy Minister Poonpirom Liptapanlop said the government would lower excise tax on every type of gasohol (a blend of ethanol and gasoline) at Bt3.30 plus municipal tax of Bt0.58 per litre. Excise and municipal taxes for diesel and bio-diesel will be lowered by Bt2.47 and 2.71 per litre respectively.

Reductions will become effective July 25, said Poonpirom, adding that retail price of premium gasoline would become more expensive than gasohol 95 by Bt8 a litre.

She said the upcoming reductions in excise taxes would help offset hardships of rising cost of living and also promote the use of alternative energy.

[sriracha john]

Thai Cabinet approves Russian diesel import plan

BANGKOK - Thailand's Cabinet approved on Tuesday a plan to buy 300,000 tonnes a month of low-grade, cheap diesel from Russia, but it gave no details of the net crude importer's latest bid to ease rising fuel prices.

Prime Minister Samak Sundaravej told reporters after the Cabinet meeting the import plan was now in the hands of Energy Ministry officials.

"We need the Energy Ministry's approval on the specifications before we can start importing," said Samak, who first announced the Russian deal on his weekend television show.

Investors have sold shares in the country's biggest oil and gas firm, PTT, fearing the cheap fuel would erode PTT's retail sales. The stock ended down 5.6 percent on Tuesday.

The 300,000 tonnes are a quarter of overall domestic consumption of diesel per month.

Thailand does not currently import diesel as it has been building up its refining sector over the past 10 years with a total capacity of 1 million barrels per day , making it not only self-sufficient in oil products, but also a net exporter on occasions.

Thailand's diesel consumption in June is 45.2 million litres per day, down 9.6 pct from May's 50.0 million litres.

Samak did not name the parties involved, but said on Sunday the first batch of Russian diesel would be sold at an 8 baht a litre discount to pump prices and could arrive in Bangkok in 60 days.

The discounted price is 18 percent cheaper than the current diesel price of 44.24 baht a litre.

Samak said on Tuesday the sulphur content in the Russian diesel varied between 0.02 and 0.5 percent.

Thailand stopped using diesel with 0.5 percent sulphur content a few years ago and environmentalists and refiners said the return of low-grade diesel would worsen air pollution.

Russian low-grade gas oil is increasingly finding it difficult to find homes in Northwest Europe due to tighter sulphur specifications, prompting Russian exporters to seek alternative outlets in Asia.

The European Union has been reducing sulphur content in diesel and from 2009 it will be reduced to 10 parts per million at present, but many many Russian refineries are unable to meet the new standards.

Samak said the Russian diesel would only be sold outside the capital, Bangkok, and through rural cooperatives to truckers, farmers, and fishermen.

Facing a sustained protest on the streets of Bangkok and shaky public support, Samak's five-month-old government is trying to shore up its popularity with handouts to everyone from rice farmers to bus operators.

The Cabinet also approved on Tuesday a proposal to virtually waive excise taxes on ethanol-mixed gasoline and diesel in an attempt to counter soaring fuel prices.

- Reuters

Edited July 15, 2008 by sriracha john

[slapout]

Should be interesting to see the price which this Russian diesel is sold for, when it gets here. Price of this grade of diesel is lower today than what the PM and company contracted to pay for it. Guess this is another area that the PM should go to school on (futures tradeing), plus read what the oil sector is forecasting for world oil in the next year or so. The quote that the sulphur content is between .02 and .5% shows a real attempt to not answer the content question. Another hurry up deal to recover past expenses incurred by certain office holders seems to be the norm.

[bendix]

It's classic Thaivisa that the fact that the government is cutting tax on gasohol by nearly 4 cents a litre tonight is totally ignored.

A week or so ago, I paid over 37.3 baht a litre for gasohol 91. This week I see the pump prices are at 34.99 and from tomorrow that price is likely to drop close to 31 baht a litre. But, hey, let's not acknowledge good developments, huh?

[PeaceBlondie]

bendix is right that we are overlooking the lowered price of fuel. I paid less for benzene 91 yesterday - about 40.41 - than I have paid in a long time. But oil futures have plummeted, too.

Okay, so the Thai national govt. is giving lots of freebies to the people, and greatly reducing its fuel taxes. How is it going to pay for the freebies, with reduced revenue?

[bendix]

bendix is right that we are overlooking the lowered price of fuel. I paid less for benzene 91 yesterday - about 40.41 - than I have paid in a long time. But oil futures have plummeted, too.

Okay, so the Thai national govt. is giving lots of freebies to the people, and greatly reducing its fuel taxes. How is it going to pay for the freebies, with reduced revenue?

Not a problem PB. I've just landed a new job at a much better salary. The extra tax I will pay will more than cover it for the rest of you.

You lot should be grateful I'm here to help you all out.

But it's ok. I don't do it for the thanks. I do it because I like to give give give.

[slapout]

Yes bendix I acknowledge the Govt is cutting fuel tax. What I was pointing out the Russian diesel is at a world price that is much lower than what was paid for it by Thailand. As oil has dropped by 18 % over the past weeks I would hope price comes down and on top of the govt decrese in tax it should come down more than we see today. The good developments would be noted if they took place as quickly as the intial price increases which we saw in Thailand. I see the retailers tanks are to be measured so they receive a tax paid rebate, that will (i hope) be reflected at pumps tomorrow.

[bendix]

It will come down (so long as current lower crude prices are maintained). You can't expect it to happen overnight - there is a supply chain to take into account.

[slapout]

Thank you bendix for the" supply chain", time lag update. The govt tax rebate has not one thing to do with supply chain as far as the consumer is concerned. Yes there are many people on TV who understand the oil sector from exploration to pump price to the consumer, with lag time figured in. I am happy that you have a new job with more income, not sure what that has to do with topic but you will probably enlighten the rest of us. have a wonderful day.......

[cclub75]

It's classic Thaivisa that the fact that the government is cutting tax on gasohol by nearly 4 cents a litre tonight is totally ignored.

A week or so ago, I paid over 37.3 baht a litre for gasohol 91. This week I see the pump prices are at 34.99 and from tomorrow that price is likely to drop close to 31 baht a litre. But, hey, let's not acknowledge good developments, huh?

Sure we are delighted.

First because it's going to be a hel_l of a party... for 6 months. Whisky will be replaced by diesel.

And so delighted that it makes me forget that LPG prices will increase in august. And that NGV will increase by 41 % in january (from 8.50 THB to 12 THB/kg).

So as you see it's like the Pascal's Wager...

If you think that by next february, crude oil will back at 70 USD... then the magic of tax cut could do the trick.

But if you don't... then what will happen at the end of the party time ?

[Plus]

Six months from now we will be in the middle of the winter and there's no way the oil price will stay on the same level until then.

When oil goes up, 3 baht difference at the pump will be wiped out in a couple of weeks. No one would even remember there was a reducion back in July.

I hope Russian diesel doesn't make it to the pump - even Thai made diesels won't work on that stuff, it's for old boats and buses only.

[Heng]

They are raising some of the expressway tolls starting September 1, if I heard correctly on the news last night, with the bottom tier being 45 Baht for the main segments. That's where I'd be if I chose a life of government service as a course in life.

[ovenman]

They are raising some of the expressway tolls starting September 1, if I heard correctly on the news last night, with the bottom tier being 45 Baht for the main segments. That's where I'd be if I chose a life of government service as a course in life.

Heng, the toll-taker?

[Heng]

Pretty much, only it'd be one lump sum toll (payable by STECON, Ch. Karncharng, etc.) and then a miniscule % cut (labeled "tollway cleaning expenses" on the books) of the total revenue for the life of the project.

[slapout]

Just a review of the price of diesel at pumps, week of July 4 diesel price CM 45 baht a liter, oil peaked at 146+-/ bbl. (sweet crude) July 29 oil price 125+-/bbl, diesel in CM 38.5. We have had a tax cut of 2.41 to 2.71/liter, " to offset hardships ". Wish the cabinet was more in tune with pump price margin vs world oil price but guess they are still working on Russian diesel transport and sales. I noticed that US pump price has come down by 10 baht during this same time frame but maybe that should not be compared to Thai diesel marketing ????

[sriracha john]

Interesting turnaround...

News on Channel 5 has reports of how Lao are crossing into Thailand at Nong Khai and Mukdahan to fill up their vehicles with the lower priced gas now that the subsidized price is lower here... The same as Thais were doing in the South to fill up their vehicles with even heavier subsidized gas in Malaysia, prior to Malaysia putting a halt to it...