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

[Martin]

Nothing surprising here, as 'in June' is still six to ten weeks away.

In fact, it is good news.

If he had said that he expected the price to go down, he would have been foreseeing the most almighty recession/Depression setting in very, very rapidly.

Oil supplies are now very tight, and only sufficient to be supplied to those who are willing to pay US$120 per barrel for what they wish to have over and above any deliveries that they are due under old contracts.

And oil supplies will get tighter, as it appears that the amount coming out of the ground can't be ramped up to even match the increases in usage within the oil-exporting nations themselves. So, of course, the price at which supplies of what is available for export and the sales of it come into balance will keep on rising. (That is, unless the customers start wanting a lot less---but that will only happen when there is a collapse in demand from the customers because their businesses are contracting in recession).

There is still a lot of optimism around, though.

I note that the US Navy is only pricing in oil at US$225 per barrel in its parameters for the design of its next ships.

Methinks that oil will be well above that before those ships are even 'off the drawing board', never mind into service.

But, of course, to Thailand it is the price of oil in baht (or, more fundamentally, the price per barrel compared to the price per ton of rice) that matters.

And even that only matters in the period until Thailand unhooks itself from the need to import oil.

That 'unhooking' will be messy (and even painful unless it happens in a well-managed, timely way), but appears to be possible for Thailand somewhat more easily than it will be for longer and more-deeply industrialised nations.

[Thai at Heart]

Nothing surprising here, as 'in June' is still six to ten weeks away.

In fact, it is good news.

If he had said that he expected the price to go down, he would have been foreseeing the most almighty recession/Depression setting in very, very rapidly.

Oil supplies are now very tight, and only sufficient to be supplied to those who are willing to pay US$120 per barrel for what they wish to have over and above any deliveries that they are due under old contracts.

And oil supplies will get tighter, as it appears that the amount coming out of the ground can't be ramped up to even match the increases in usage within the oil-exporting nations themselves. So, of course, the price at which supplies of what is available for export and the sales of it come into balance will keep on rising. (That is, unless the customers start wanting a lot less---but that will only happen when there is a collapse in demand from the customers because their businesses are contracting in recession).

There is still a lot of optimism around, though.

I note that the US Navy is only pricing in oil at US$225 per barrel in its parameters for the design of its next ships.

Methinks that oil will be well above that before those ships are even 'off the drawing board', never mind into service.

But, of course, to Thailand it is the price of oil in baht (or, more fundamentally, the price per barrel compared to the price per ton of rice) that matters.

And even that only matters in the period until Thailand unhooks itself from the need to import oil.

That 'unhooking' will be messy (and even painful unless it happens in a well-managed, timely way), but appears to be possible for Thailand somewhat more easily than it will be for longer and more-deeply industrialised nations.

How about a tax break for cars under 1.2l? I'd buy a town car in a second.

[Heng]

Woohoo! Less traffic on the roads.

That's the astounding thing. There's more traffic on the roads now then there was just awhile ago when diesel was 16 baht and benzene was 20 and it has only steadily increased since those prices steadily rose from that to what they are today.

And just imagine how bad it would be without the increased fuel costs. It'd be more than a "steady" increase, more likely exponential.

[sriracha john]

That's nearing 3,000 baht for a full tank in our diesel Land Rover!

And just think, if you had bought a CRV or Fortuner, you would have had a couple million baht left over in your pocket. That would have bought allot of tank-fills no matter what the price. But I assume that since you had the cash for a flash SUV, whats a few thousand baht per tank for swells like you?

"Tank" is laughing that you called him flash. He's a rough and ready Series IIA and is 36 years old and was handed down to the missus from her grandfather, who bought it new. Refurbishing was accomplished for a lowly 250K, but as a result, it would ride up one side of a CRV and down the other side of a Fortuner like they were nothing more than minor nuisance speed bumps.

[Boater]

Just filled the tank last week ... 3400 THB, lasted only 540 KM as well .......

As mentioned in the other post about Saudi, i was in Dubai last month and my friend filled up his Range Rover Sport, ( Was near Empty when arriving at the gas station ) and it only cost 1,100 THB for a full Tank!

But hey, we still aint as expensive as the uk!

[Tomkagai]

Oil price may top 45 baht/liter in next few days

Energy specialist Manoon Siriwan admits that the retail prices of benzene may top 45 baht per liter while the retail diesel price could hit 38 baht per liter in the next few days, if the price of global crude oil reaches 125 US dollars per barrel.

Mr. Manoon says in the next few months, the price of crude oil in the United States of America is likely to hit 150 US dollars per barrel, further speculating that it may reach 120 US dollars per barrel soon. He says if so, the Oil Fund will release more oil from its warehouse to speculate for benefits.

He suggests saving energy but consuming alternative energy instead may help alleviate the current crisis. He says the related-organizations must be well-planned and managed over growing energy plants and agricultural plants as well.

- ThaiNews / 22-4-08

Hope it keeps going up....keeps me in a job and the dayrate is increasing accordingly....

[Jai Dee]

Hope it keeps going up....keeps me in a job and the dayrate is increasing accordingly....

I'm sure there's quite a few of us in that position...

Whoops... just caught myself responding in a news/political thread.

Sorry folks... will try to restrain myself in future...

[Tony Clifton]

There are lots already but there'll be record numbers of pick-ups and SUVs repossessed soon.

[basjke]

All a big scam, it' ll go to 200$ a barrel and remain up there forever, not much done refinery capacity wise, this way, poorer parts of the world will have to reduce consumption and it will severely put a brake the new booming economies, richer countries can have whatever is available.

All depends on cowboy george and his politics.As long as he stays in charge the dollar will fall and the oil rise proportional.If you look at europe the price at the pump hasn't risen that much in euro's.As soon as the dollar goes up again crude oil will fall.Take a look at the energy prices and currency rates at bloomberg,they will always move accordingly.

[Brigante7]

Makes the case for the Thai goverment to reduce the import tax on small diesel cars all the more pressing, not that it will happen, although the Focus TDCi is a good start.

At least the Thai goverment are not as greedy as the UK goverment with absolutely no regard for the people living in the UK, 25 years ago diesel was around 25p a gallon cheaper than petrol now it's almost 50p a gallon more.

Go to nearly any European country and diesel is cheaper than petrol.

[LaoPo]

Fascinating...

Typical men's topic where just men react (I'm one too..), worried about their wallet...

If it's about FOOD (Rice for instant ) which DOUBLED in price there are few reactions...

Odd.

LaoPo

[JimsKnight]

North Sea Rigs will be booming this year.

Shutdown season ahoy!

[sriracha john]

Fascinating...

Typical men's topic where just men react (I'm one too..), worried about their wallet...

If it's about FOOD (Rice for instant ) which DOUBLED in price there are few reactions...

Odd.

LaoPo

Diesel and benzene have also doubled (more than that if these prices occur) in 5 years.

[phetpeter]

Remember its not the oil producers pushing the price up! Its a small gorup of very greedy people pushing up the prices in the futures market.

Playing with our lives, it like playing poker!

Governments should close the futures markets and when this form of gambling is stopped, then prices would fall back to where they should be on many products.

[tartempion]

and good news for Thailands proposed eco car project, this needs to be up and running asap

Before that, roll on the 400k 1.0l car. Doesn't exist anywhere in the market.

In Europe I own a VW polo, runs on diesel and drinks 5l/100km, but here they are stupid enough to tax imported cars with min 174%, protects the factory workers you know

Both the upcoming petrol crisis and subsequent food crisis are artificial, but it will affexc billions of people

[Heng]

And more importantly protects the handful of imported car dealers (Eton, SEC, Wattana, etc.).

[Naam]

we don't care about fuel prices. in our Jazz we put fuel for 800 and in the Accord for 1,500 Baht. that method renders any price increase irrelevant

[dannyman]

ELECTRIC CAR

[Thai at Heart]

And more importantly protects the handful of imported car dealers (Eton, SEC, Wattana, etc.).

Well I was sure they weren't doing it for the benefit of the populous of Thailand. Also happens to protect very nicely the Japanese manufacturers who have in fairness invested a lot of money in Thailand.

But why Toyota or Honda havent' started selling small engine versions of the Yaris or Honda the Jazz I can't really work out. Maybe the difference in the price wouldn't be enough, but if ever the great minds of the govt were to ponder this fact, I am sure that a tax break on 1.0 to 1.2l engined cars bringing them below 400k would be very benficial to consumption in Thailand as opposed to the other option of buying a 2l or 2.5l pick up.

[Plus]

That's why they have started the eco-car project.

Without tax breaks people were not buying enough cars with small engines to justify local production. Honda just dropped 1.3l engine from Jazz and City, for example, but they will reintroduce small engines once their "eco-car" model will be ready.

[LaoPo]

Fascinating...

Typical men's topic where just men react (I'm one too..), worried about their wallet...

If it's about FOOD (Rice for instant ) which DOUBLED in price there are few reactions...

Odd.

LaoPo

Diesel and benzene have also doubled (more than that if these prices occur) in 5 years.

I meant to say:

1. That it's just men talking/complaining about fuel prices for their cars; not women.

2. Food is far more important than fuel; most people* could do without their car but most people -like 100%- couldn't do without food**.

* I'd say between 80-90% of the people could do without a car/motorbike, if necessary.

** Price rises in a single year: March 2007 - March 2008

From: http://news.bbc.co.uk/2/hi/in_depth/7284196.stm

LaoPo

[cclub75]

Fascinating...

Typical men's topic where just men react (I'm one too..), worried about their wallet...

If it's about FOOD (Rice for instant ) which DOUBLED in price there are few reactions...

Odd.

Fair enough. But you should not forget that oil = food.

Fertilizers and other chemicals are all created from oil.

Plus all the rest... Oil is even more than our food : it's the blood of the world economy.

Therefore, yes, I think it's more important to be concerned about the oil prices (and more importantly the oil supply) than just the price of rice.

Sounds cynical I know, but that the -harsh- reality of the big picture.

Edited April 24, 2008 by cclub75

[LaoPo]

Fascinating...

Typical men's topic where just men react (I'm one too..), worried about their wallet...

If it's about FOOD (Rice for instant ) which DOUBLED in price there are few reactions...

Odd.

Fair enough. But you should not forget that oil = food.

Fertilizers and other chemicals are all created from oil.

Plus all the rest... Oil is even more than our food : it's the blood of the world economy.

Therefore, yes, I think it's more important to be concerned about the oil prices (and more importantly the oil supply) than just the price of rice.

Sounds cynical I know, but that the -harsh- reality of the big picture.

I agree and disagree...

The situation you describe is just 100 years old.

Mankind survived without oil before it was even found and/or in use.

BUT: the world had a mere 1,65 Billion people in 1900.

Now we have 6.6 Billion, and this is the projection:

LaoPo

[sriracha john]

Thai Airways to raise fuel surcharge due to high oil prices

BANGKOK (AFP / April 25) — Thai Airways will increase its fuel surcharge by between 20 and 35 dollars per passenger on most international flights due to rising oil prices, an airline official said Friday.

The increase will take effect from Monday with the surcharge on most domestic flights rising to 750 baht (around 23 dollars) from 600 baht.

Passengers on most international flights will now have to pay a fuel surcharge of between 45 and 140 dollars, compared with the current charge of between 25 and 105 dollars.

Pandit Chanapai, executive vice president at Thai Airways International's commercial department, said the flag carrier had to adjust its surcharge to reflect the increase in fuel costs due to rising global oil prices.

"The company previously took responsibility for these increases and delayed any further increase in the fuel surcharge since the recent Songkran (Thai New Year) holiday, so as to not impact large numbers of passengers' travel," Pandit said in a statement.

The increase will not affect services between Bangkok and most Southeast Asian cities, where passengers will continue to pay 25 dollars.

The 25-dollar surcharge would also stay in place for Hong Kong-Taipei, Dubai-Kuwait, Karachi-Muscat and Chiang Mai-Kunming flights.

Thai Airways is controlled by the Thai government, which holds a 54.21 percent stake.

[JetsetBkk]

This should make Thailand a bit quieter during the low season. Just what it doesn't need with all it's other problems.

Edit:

Misread 'domestic' and 'international' surcharges.

Edited April 25, 2008 by JetsetBkk

[sriracha john]

Can anyone good with metric and currency conversions tell us what Americans are paying in Thai baht per liter over there today for benzene 95? (the "Supreme Unleaded")

A customer pumps gas where self-serve regular gasoline is at and above the $4-a-gallon mark at a Chevron station in Malibu, Calif., Friday, April 25, 2008.

Associated Press

p.s. $4.20 per U.S. Gallon will likely make it easier and it involves only rounding up 1/10th of 1 cent.

Edited April 26, 2008 by sriracha john

[Supaporn]

Can anyone good with metric and currency conversions tell us what Americans are paying in Thai baht per liter over there today for benzene 95 ("Supreme Unleaded)?

A customer pumps gas where self-serve regular gasoline is at and above the $4-a-gallon mark at a Chevron station in Malibu, Calif., Friday, April 25, 2008.

AP

p.s. $4.20 per U.S. Gallon will likely make it easier and it involves only rounding up 1/10th of 1 cent.

Approximately 34.76 Baht per liter. Based on 1 Gallon = 3.78 liters US$1 = 31.28 Baht

Did I do that right?

[LaoPo]

Can anyone good with metric and currency conversions tell us what Americans are paying in Thai baht per liter over there today for benzene 95 ("Supreme Unleaded)?

A customer pumps gas where self-serve regular gasoline is at and above the $4-a-gallon mark at a Chevron station in Malibu, Calif., Friday, April 25, 2008.

AP

p.s. $4.20 per U.S. Gallon will likely make it easier and it involves only rounding up 1/10th of 1 cent.

Approximately 34.76 Baht per liter. Based on 1 Gallon = 3.78 liters US$1 = 31.28 Baht

Did I do that right?

Almost correct:

$ 4,20 for supreme unleaded/Gallon = Baht 133,418/Gallon

Baht 133,418 : 3,78541178 (US Gallon) = Baht 35,24 per Liter

In Europe we pay at least DOUBLE the price than in the US...so US car drivers shouldn't complain and on top of that the 95 supreme unleaded is therefore MORE expensive in LOS than the USA......

LaoPo

[Supaporn]

Can anyone good with metric and currency conversions tell us what Americans are paying in Thai baht per liter over there today for benzene 95 ("Supreme Unleaded)?

A customer pumps gas where self-serve regular gasoline is at and above the $4-a-gallon mark at a Chevron station in Malibu, Calif., Friday, April 25, 2008.

AP

p.s. $4.20 per U.S. Gallon will likely make it easier and it involves only rounding up 1/10th of 1 cent.

Approximately 34.76 Baht per liter. Based on 1 Gallon = 3.78 liters US$1 = 31.28 Baht

Did I do that right?

Almost correct:

$ 4,20 for supreme unleaded/Gallon = Baht 133,418/Gallon

Baht 133,418 : 3,78541178 (US Gallon) = Baht 35,24 per Liter

In Europe we pay at least DOUBLE the price than in the US...so US car drivers shouldn't complain and on top of that the 95 supreme unleaded is therefore MORE expensive in LOS than the USA......

LaoPo

Depends on the exchange rate you want to use.... Never seen one that stayed steady for more than a minute anymore anyways.

[PeaceBlondie]

My last currency exchange, on Thursday, was at 31.20 baht for a dollar. 91 Benzene is at 35.74. That converts to $4.34 per gallon, more than they pay for the same octane in the USA. Mai bpen rai. My kids drive thirsty SUV's in Texas and I get 32 km per liter in Thailand. However, my daughter doesn't drive her Range Rover like I ride my CBR150R. She, three kids, husband and huge dog would not fit on a CBR.