Gasoline Prices May Jump To Bt25 A Litre

[george]

Gasoline prices may jump to Bt25 a litre, says analyst

BANGKOK: -- Gasoline prices on the domestic market may leap to as high as Bt25 a litre if oil prices on the world market continue to rise, according to a leading analyst.

Mr. Thanawat Polvichai, the Director of the Economic Forecast Centre of University of the Thai Chamber of Commerce, told TNA yesterday that crude oil prices on the world market are still on a rising trend.

"The crude oil prices on the world market have continued to rise, and may reach US$60 a barrel from the last quarter of this year to the first quarter of next year", he said.

"This is because of the rising demand of oil during the looming winter season, making the global supply and demand of oil stand on nearly the same level of around 84 million barrels a day", he disclosed.

Mr. Thanawat cautioned that world oil price could jump to as high as US$75 a barrel if there was any unexpected incident, like a fresh major terrorist attack, or a sabotage of any oil source.

Given the upward trend of the global oil prices and the government's plan to float fuel prices early next year, the prices of gasoline on the domestic market could be as high as Bt25 a litre, while the price of diesel could rise to Bt19 a litre, he

projected.

The government has capped the retail prices of gasoline and diesel on the domestic market since January, but has gradually raised the prices of gasoline over the past months, but has reiterated that the capped price of diesel will be maintained until February 2005 when it will be gradually floated thereafter.

Mr. Thanawat said that the government could have to spend up to Bt70 billion totally on capping the diesel price this year, and that the amount could reach Bt100 billion in June 2005.

He cautioned that the country's structure of fuel use had begun to distort due to the capped fuel price policy.

He pointed out that the domestic use of diesel had increased to 70.5%, from 69.5% before the policy was implemented, due to the rising number of vehicles adjusted for diesel engines.

Meanwhile, Mr. Apisit Rujikeatkamjorn, the Senior Executive Vice President of PTT Public Company Limited (PTT), told TNA that world oil prices could stay around US$54-55 a barrel over the next six months when many countries would enter the winter and oil stocks in such key countries as Japan and the United States are declining.

The premium and regular gasoline prices on the domestic market now stand at Bt22.39 a litre and Bt21.59 a litre respectively, while the diesel price has remained at Bt14.59 a litre.

-- TNA 2004-10-20

[Darknight]

So who's complaining here ?

I pay currently around 55bath for a litre diesel (1.09 euro).

And around 65 for a litre gasoline (1.27 euro)

Big deal 14.59 bath a litre , still cheap

[astral]

What is the point of a report like this,

except scaremongering.

[Tompa]

So who's complaining here ?

I pay currently around 55bath for a litre diesel (1.09 euro).

And around 65 for a litre gasoline (1.27 euro)

Big deal 14.59 bath a litre , still cheap

It's true that prices are still a lot cheaper here than in Europe. However, you most likely make 5-10 times more in salary than the average Thai!

Comparatively, gasoline prices in Thailand are very expensive.

[george]

Update:

Petrol price subsidy lifted in Thailand

BANGKOK: -- Petrol price in Thailand on Thursday begins to move freely in line with the global market after the government finally removed its petrol subsidy.

"From now on oil companies will convene every week and they will decide at what level petrol should be priced," Energy Minister Prommin Lertsuridej was quoted by The Nation newspaper assaying.

Since the beginning of the year, the Oil Fund has subsidized fuel prices by 42 billion baht (about 1 billion US dollars) with 7billion baht (167 million US dollars) subsidizing petrol and 35 billion (833 million US dollars) for diesel.

Prommin said diesel subsidy would stay in place and it would not impair the country's fiscal discipline.

Prommin said the subsidy on diesel will be possibly maintained until March next year.

Meanwhile, the new petrol price policy will immediately generate income to the Oil Fund, which is expected to receive 250 million baht (about 6 million US dollars) a month from the price hike.

"With that income, we can comfortably finance the interest burden of about 20 million baht a month. And mid-next year, we should be able to start repaying the principal," said Sivanan Na Nakhon, director of the Energy Fund Institute.

--Agencies 2004-10-21

[eljeque]

Oil subsidy

Subsidizing pollution

[Rinrada]

Local news in the smoke centered on a garage in the west end (Chelsea)who had upped their petrol prices to over £1-05 /ltr.@ 80Bt.

Now that would be a killer..... or would it?

Its like the time beer hit 10 bob a pint and everyone was going to give it up and turn tea total

Last week I got 3 pints at Heathrow with no change out of a tenner £

[p_brownstone]

Meanwhile, the new petrol price policy will immediately generate income to the Oil Fund, which is expected to receive 250 million baht (about 6 million US dollars) a month from the price hike.

"With that income, we can comfortably finance the interest burden of about 20 million baht a month. And mid-next year, we should be able to start repaying the principal," said Sivanan Na Nakhon, director of the Energy Fund Institute.

--Agencies 2004-10-21

This is arrant nonsense.

Discontinuing a Subsidy - i.e. allowing new sales of Gasoline to be sold at realistic levels to reflect current Production costs - clearly does not produce "income", it merely stops further increases in the level of the “Oil Fund”; a liability which, even at it’s current level, will be a serious drain on Thailand’s budget for many years to come.

[chanchao]

> Prommin said the subsidy on diesel will be possibly maintained

> until March next year.

Cool... I seriously like this spending bonus on driving my truck. Now come Feb next year or so I should source some nice big barrels to fill up and store around the house for when the price is floated...

Cheers,

Chanchao

[thaiwing]

What is the point of a report like this, except scare-mongering.

I walk your path the same on this story.....Sounds like a bad and well-timed case of political disturbance/disruption against the TRT...Such a change would put the country into an unbearable position for much of thailands people...Mr Thanawat Polvichai is sturring a big pot with this analyst.

[p_brownstone]

What is the point of a report like this, except scare-mongering.

I walk your path the same on this story.....Sounds like a bad and well-timed case of political disturbance/disruption against the TRT...Such a change would put the country into an unbearable position for much of thailands people...Mr Thanawat Polvichai is sturring a big pot with this analyst.

I certainly do not agree that this is scaremongering.

Thai people need to be made aware that the populist policies of the Thaksin Government cost money - and this money must come from somewhere, usually taxation - however at the moment the Oil Fund is financed by bank borrowings. This device enables the Government to present a "Balanced Budget", essentially keeping this huge debt off the Balance Sheet.

The Fuel Subsidy is merely postponing the inevitable and giving people a false sense that the Economy is going well because inflation is so low.

After the election fuel prices, particularly for Diesel, will surge and living costs will rise with it, but by then it will be too late and Thaksin will have been given another 4 years to mortgage even more of the Country's future income to pay for his profligate spending programs.

Worse, even though the Oil Fund will then no longer grow - at least not so quickly as it is doing now, future Governments will be saddled with a huge debt of over Baht 100 billion, plus the Interest Charges to service the debt.

[axl]

Unfortunately higher gasoline prices will not affect the number of vehicles on the road...

[BKKdreaming]

does the LPG / Propane that most taxis use also go up ?

And if so what increase in fares ?

[stumonster]

does the LPG / Propane that most taxis use also go up ?

And if so what increase in fares ?

I think most taxis are on unleaded fuel, tuk tuks are on gas.

these price increases are hitting the taxi drivers hard, evry one baht increase is 50 baht increase on a full tank of fuel, so the recent increases are nearly making it nearly impossible to make a living for taxi drivers unless they own their own taxi.

and mr T dare not float the fuel prices till after the election, but once that happens the thais will get hammered as prices for everything rises.

[Lioneric]

I think to help Government to over subsidy the diesel ,they should allow my company to import freely from Russia.

The current price per metric ton that we are buying form Russia is USD 360.00

consist 1,182 liters it's about 12.00 Bt per liter deliver to any port in Thailand. IN this way we can help Thai people for not to pay heavy prices on diesel and Mr T don't have to subsidy so much.With that kind of money they can spend in medical and education fund not on fuel along.

I am not joking my company is I&W Petroluem Synergy, the sole agent for Russia oil in Asia countries. I really want to help that's all.

[astral]

Comparatively, gasoline prices in Thailand are very expensive.

I must disagree with that.

Back in 1985, when there were 25baht/1$ petrol was 9 baht/litre (36ct)

Until the recent price rises kicked in it was about 16 baht/litre, (38ct)

but there are 42baht/$1.

It is only in the last 6 months since the oil prices surged that Thai's have really been faced

with a price increase.