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

[sriracha john]

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 CBR150.

Why not? In Thailand, these farang do 5 on a 125cc.

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

*edit.

btw, thanks everyone for the calculations. I'm just not good with that. I was surprised to learn Thailand is more expensive as that $4.20 a gallon sign just floored me as a staggering amount. I've since learned otherwise. Thank you. In the 70's, I pumped gas for a summer... it was 29 cents.

Edited April 26, 2008 by sriracha john

[sriracha john]

When does the OREC (Organization of Rice Exporting Countries) cartel get formed in response to OPEC?

With historically high prices and world shortages, Thailand is well situated to take Chairmanship of the group as #1 exporter.

How much consultancy money should I expect to receive from CP Group's Khun Dhanin for my idea?

THAILAND WANTS OPEC-LIKE CARTEL FOR RICE

BANGKOK (Bernama/April 27) -- With the rice price soaring in tandem with the skyrocketing oil price, Thailand's largest enterprise has call on the government to form an OPEC-like alliance on rice to elevate its price.

CP Group Chairman, Dhanin Chearavanont, said Thailand, the world's biggest rice exporter, should approach three major rice-producing countries, namely China, Vietnam and India, to form the alliance similar to the Organisation of Petroleum Exporting Countries (OPEC).

"Today Vietnam has halted its export of rice for fear of domestic shortage. China alone doesn't have excess rice for export, while India may have some rice surplus for exports in the coming years. So why don't we join hands with those three countries to improve prices," said Dhanin, as rice price rose to US$1,000 a ton from just US$367 about 10 months ago. Ranked by Forbes as Thailand's third wealthiest person last year with a net worth of US$2.4 billion, Dhanin made the proposal when addressing senior policy makers of the Office of the National Economic and Social Development Board.

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I'll be expecting my first check soon, Khun Dhanin.

[LaoPo]

When does the OREC (Organization of Rice Exporting Countries) cartel get formed in response to OPEC?

With historically high prices and world shortages, Thailand is well situated to take Chairmanship of the group as #1 exporter.

How much consultancy money should I expect to receive from CP Group's Khun Dhanin for my idea?

THAILAND WANTS OPEC-LIKE CARTEL FOR RICE

BANGKOK (Bernama/April 27) -- With the rice price soaring in tandem with the skyrocketing oil price, Thailand's largest enterprise has call on the government to form an OPEC-like alliance on rice to elevate its price.

CP Group Chairman, Dhanin Chearavanont, said Thailand, the world's biggest rice exporter, should approach three major rice-producing countries, namely China, Vietnam and India, to form the alliance similar to the Organisation of Petroleum Exporting Countries (OPEC).

"Today Vietnam has halted its export of rice for fear of domestic shortage. China alone doesn't have excess rice for export, while India may have some rice surplus for exports in the coming years. So why don't we join hands with those three countries to improve prices," said Dhanin, as rice price rose to US$1,000 a ton from just US$367 about 10 months ago. Ranked by Forbes as Thailand's third wealthiest person last year with a net worth of US$2.4 billion, Dhanin made the proposal when addressing senior policy makers of the Office of the National Economic and Social Development Board.

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I'll be expecting my first check soon, Khun Dhanin.

Thailand might still be the largest rice exporter but production wise it's quite small in comparison with the three mentioned countries, Vietnam - China and India, apart from Indonesia and Bangladesh which countries are also larger rice producers than Thailand.

Rice Production and Consumption

I think it's wishful thinking from Mr. Dhanin and a good idea but won't work. All those large producing countries will think of their own country/people first when it really matters.

We shouldn't forget that rice is a daily first-need-food commodity in every single rice producing country and a very sensitive item for the different governments. They can't afford unrest because of rising rice prices for their own people

BTW, rice prices in China are quite stable since China has large rice reserves of 40-50 Million tonnes versus 2 Million in Thailand.

Oil and it's cartel is a completely different commodity and organization.

I think Khun Dhanin was also thinking about his own wallet and companies when he mentioned and launched his idea of a RICE CARTEL...

LaoPo

[Heng]

I think it's an idea whose time will come. It's only a matter of time before these "global food crisis" type situations become more and more common. The people who control the world's oil, food, and eventually water will have everyone by the gapok(s).

[YoungFarang13]

Oh god, the Chinese-Thais are going to buy all the land up in Isaan.

[Plus]

China, India, and Indonesia are more than ten times larger than either Thailand or Vietnam and most of their rice is for domestic consuption.

Cartel would deal with exports and this is where Thailand has the edge - it still is the biggest exporter in the world.

The problem for Thailand is that driving world prices up will have a negative effect on domestic prices, too, leaving millions of Thais vulnerable. Haves and have nots will be further separated.

[YoungFarang13]

why not just government subsidize rice and export at higher prices like oil countries?

[Plus]

Beacuse Thai government is ineffectual and not really in control of the trade. They will have to set export quotas to maintain domestic supply while the traders will try to cheat those quotas as they get higher profits from selling abroad.

The potential for corruption is enourmous.

Look at recent attempts to control pork prices - the government quickly set price limits and no one followed - its unenforceable.

[Thai at Heart]

Beacuse Thai government is ineffectual and not really in control of the trade. They will have to set export quotas to maintain domestic supply while the traders will try to cheat those quotas as they get higher profits from selling abroad.

The potential for corruption is enourmous.

Look at recent attempts to control pork prices - the government quickly set price limits and no one followed - its unenforceable.

With all the logic of your post showing the problems, this still will probably not stop them trying.

In 2 seconds of thought you or anyone else could think up another 5 problems with the idea, but I predict that in a month or so we will see some high level discussions going on between Thailand and the relevant countries discussing the idea further coz there are $$$$$$ to made from it.

[peter991]

I don't know why Thai people can afford to run their vehicles (cars, pickups and motorcycles) at these rates.

Let me see if I have this correct:

45 baht = 1 litre of fuel. Average Thai wage = 200 baht per day. For a day's work, a Thai could buy 4.44 litres (1 Australian gallon) of fuel.

In Australia, petrol/benzine/gasoline is around $AUD1.50 a litre. Currently close to 30 Thai baht = $AUD1. So fuel in Australia is about the same price as fuel in Thailand!

The average wage in Australia is around 6660 baht a day.

And I thought I had problems when I go to fill the Commodore!

Peter

[gmac]

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

That's all very well until the 800 or 1500 Baht only gets you there but not back again!!

[skooldaze]

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

I shudder to calculate what an equally large benzene-filled tank would run.....

Our RR, before we sold it a few years ago, used to get a little over 300 Km's of town driving on an eighty litre tank. At 45B litre - over 10B per kilometre.

and a 3,600 baht check bin at the Shell station come fill-up time.....

that's more than airfare to some places....

Get rid of the guzzling hog then. Get a hybred or a motorbike.

TW actually wants to buy one - Toyota Alphard or something or other????

Price tag in the 4 Mil baht region for a bloody box on wheels. Buy a reasonably stylish car at the 2.5 - 3.0 mil baht mark and the extra million saved will buy ten years, or 500 tanks or 400,000 km's of fuel.

or

Could just wait another ten years for the price of hybrid cars to join the realms of reality / good value for money.

Unfortunately, hybrids do not seem to make any economic sense whatsoever at this point in time.

Soundman.

IN the west hybrids are only 10 percent more expensive than normal cars. But the reason they'er expensive in Thailand is because they don't make them here and they're all imported. And we all know that importing a vehicle adds 200 percent to a car's price here, if not more thanks to the exorbitant import tariffs on vehicles.

[SteveH]

This is making my Honda "Wave" even more attractive.

(Now if I could only fit a few more of the family on it, plus 3 cartons of Singha, 20 Kilos of rice and half a dozen durian.......... )

Get a sidecar fitted then the family dog could come along too.

[Lancashirelad]

Just to give some perpective, diesel at my local Shell station here in UK is now 119p (74bht) per ltr.

thats £5.41 (almost US$10.80) a gallon!

[uk gallon is slightly larger than us gallon]

Edited April 27, 2008 by Lancashirelad

[Heng]

I don't know why Thai people can afford to run their vehicles (cars, pickups and motorcycles) at these rates.

Most can't. Most are packed into buses and pickup trucks.

I know for myself, I trade a few dozen goldfish per month for gasoline. Sometimes it's fighting fish. Sometimes it's misc. aquarium plants. Other folks have different methods. You probably shouldn't assume that all Thais are trading goldfish for gas either.

[thaigene2]

Beacuse Thai government is ineffectual and not really in control of the trade. They will have to set export quotas to maintain domestic supply while the traders will try to cheat those quotas as they get higher profits from selling abroad.

The potential for corruption is enourmous.

Look at recent attempts to control pork prices - the government quickly set price limits and no one followed - its unenforceable.

The Thai Governments in the past (and probably including this one) are in favor of acting only when a little scheme can be worked out between connected families. That's the name of the game.

[opengoal]

Oh god, the Chinese-Thais are going to buy all the land up in Isaan.

Most of the land in issan is hocked into the bank and you know who owns the banks

[Heng]

Well there is also plenty of property in Issan held with 100% equity. But you know who owns most of that...

[cclub75]

I don't know why Thai people can afford to run their vehicles (cars, pickups and motorcycles) at these rates.

Let me see if I have this correct:

45 baht = 1 litre of fuel. Average Thai wage = 200 baht per day. For a day's work, a Thai could buy 4.44 litres (1 Australian gallon) of fuel.

In Australia, petrol/benzine/gasoline is around $AUD1.50 a litre. Currently close to 30 Thai baht = $AUD1. So fuel in Australia is about the same price as fuel in Thailand!

The average wage in Australia is around 6660 baht a day.

Now you start to understand why oil prices will be the grave of Asia (and other poor and developing countries).

It's the inescapable reality.

Thailand has one of the worst energy efficiency in the world (see here and there)

Europe, US, Japan have nuclear energy. In Europe gasoline prices are heavily taxed by the states (it means we have a "cushion").

Today, at stations on toolways in France, prices are :

-1,53 euro average per liter (for 95 and 98) !!!

It means = 75 THB.

Edited April 28, 2008 by cclub75

[sriracha john]

Now you start to understand why oil prices will be the grave of Asia (and other poor and developing countries).

It's the inescapable reality.

Thailand has one of the worst energy efficiency in the world see there)

Good article... it points out the foibles of the fuel subsidies of 2 governments ago... unfortunately, the current one has revived the taxpayer blackhole with a diesel subsidy....

http://www.nationmultimedia.com/2008/03/13...on_30067994.php

[cclub75]

Good article... it points out the foibles of the fuel subsidies of 2 governments ago... unfortunately, the current one has revived the taxpayer blackhole with a diesel subsidy....

http://www.nationmultimedia.com/2008/03/13...on_30067994.php

Don't worry... the subsidy is until... july !

;-)

And many officials are not afraid to say that the last "genius idea" of the Finance Minister (to cut the excise tax on diesel) would be a very bad idea.

http://www.bangkokpost.com/Business/28Apr2008_biz35.php

So the question is : what they will do... in july ?

We can open the bets.

[himachal]

Woohoo! Less traffic on the roads.

I wish ! How many drivers do you know who complain about the price of fuel AND own a bicycle?

[himachal]

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

The true price of fuel? Step out of your car in downtown BKK and feel the heat.

[astral]

Sheesh.

All these price hikes are artificial.

Here in Saudi Arabia, where the fuel comes from

95 octane is US$0.16 a litre.

Yes 16cts or 8p UK prices.

Cheaper than drinking water.

[dezeure]

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

I shudder to calculate what an equally large benzene-filled tank would run.....

Welcome to my world... in Europe expect to pay over a 100 Euros when filling up the Landcruiser !!!!! so its still pretty cheap

Cheers

Sam

[Plus]

Woohoo! Less traffic on the roads.

I wish ! How many drivers do you know who complain about the price of fuel AND own a bicycle?

Every household that can afford a car has at least one bicycle, usually for short trips or for the kids.

What good is a bicycle when you have to drive about ten kilometers through the traffic, and with daily rains?

Why do you think there will be less cars on the road? People still have to go to work everyday and shops still have to buy their supplies.

Do you think 8AM traffic jams are caused by leisure drivers out to show off their hot rides? In this country people have stopped driving for pleasure long time ago.

The average salary in Bangkok is not 200B a day. That is a minimum daily wage for manual labour. And even that is enough for adriving a motorcycle.

[Naam]

Sheesh.

All these price hikes are artificial.

Here in Saudi Arabia, where the fuel comes from

95 octane is US$0.16 a litre.

Yes 16cts or 8p UK prices.

Cheaper than drinking water.

in the mid 70s we used to fill up our american gas guzzlers for 11 Riyals (at that time ~4 US-Dollars). it was always 11 Riyals no matter whether 10L or 80L were put in the tank. none of the pumps' displays were working. it was 10 Riyals for the fuel and 1 Riyal tip for the yemeni attendant.

[Naam]

Every household that can afford a car has at least one bicycle, usually for short trips or for the kids.

we don't have a bicycle in our household. conclusion = we can't afford one

[Galong]

Thailand has one of the worst energy efficiency in the world (see here and there)

Thanks for the interesting links cclub75... scary and enlightening.

The Energy Minister said, “and now effort has to be spent in the production of palm oil.” What that means in reality is the the little big of jungle left in Thailand will be clear-cut, probably by slash and burn, to grow more oil palms. The country is already down to a very small amount of jungle. Every day mountain tops are cleared, which is illegal, to plant more rubber tree and oil palms. This is NOT good news and it is NOT the way for Thailand to deal with this issue.

Thai’s waste oil like it’s free… even the ones who can’t afford it. The future for Thailand looks very bleak, especially with myopic energy ministers at the helm.

Thaksinomics can be blamed for some of this, but at the end of the day it's the mindset that we'll deal with that when it happens instead of addressing it right now that will be the final nail in the coffin.

It's not too late, but Palm Oil is not the answer from what little I know about biodiesel. Non-food crops might be the answer.

[LaoPo]

I don't know why Thai people can afford to run their vehicles (cars, pickups and motorcycles) at these rates.

Let me see if I have this correct:

45 baht = 1 litre of fuel. Average Thai wage = 200 baht per day. For a day's work, a Thai could buy 4.44 litres (1 Australian gallon) of fuel.

In Australia, petrol/benzine/gasoline is around $AUD1.50 a litre. Currently close to 30 Thai baht = $AUD1. So fuel in Australia is about the same price as fuel in Thailand!

The average wage in Australia is around 6660 baht a day.

Now you start to understand why oil prices will be the grave of Asia (and other poor and developing countries).

It's the inescapable reality.

You underestimate the flexibility of mankind cclub75 !

Asia's Nuclear Energy Growth

(February 2007)

* Asia is the only region in the world where electricity generating capacity and specifically nuclear power is growing significantly.

* In East and South Asia there are over 109 nuclear power reactors in operation, 18 under construction and plans to build about a further 110.

* The greatest growth in nuclear generation is expected in China, Japan, South Korea and India

From:

http://www.world-nuclear.org/info/inf47.html

Note:

Solar energy, wind energy, tide movement energy, hybrid engines......ALL developments still in their baby shoes but will grow fast.....VERY FAST and replace oil in the future.

Let's not forget that less than 60-70 years ago mankind couldn't even imagine that we could fly within 10-12 hours to the other side of the world where it took 6 months by ship before.

NEVER underestimate mankind and it's brains.

LaoPo