Why Is Petrol So Expensive In Thailand Now?

[steelepulse]

Filled up with 91 yesterday and it was 32 baht/litre, which translates to around $3.50/gallon  I just checked gas prices in the US and the average is around 2.50-2.60 gallon.  Did Thailand recently introduce a new big tax on fuel?  I remember there was some sort of tax hike a month or two ago, but I thought it was just 1 or 2 baht/litre. 

[jubby]

Maybe its because they are pushing the Gasohol stuff. Its much cheaper. If it was the same price no one would buy it.

[Ricardo]

The oil fund is still collecting extra tax, to repay the vast debt they ran-up, in Thaksin's pre-election subsidy a few years ago. He had worked out how to borrow from the future, now you're paying for it, but he got re-elected ... so that's all OK then.

Other governments also do this sort of thing ... and call it 'smoothing', which sounds better than 'cooking the books' !

[thaimate]

The oil fund is still collecting extra tax, to repay the vast debt they ran-up, in Thaksin's pre-election subsidy a few years ago. He had worked out how to borrow from the future, now you're paying for it, but he got re-elected ... so that's all OK then.

Other governments also do this sort of thing ... and call it 'smoothing', which sounds better than 'cooking the books' !

The labour party in Britain have been doing it for years,they know they will always be thrown out and the Tories will have to sort it out

[binnsy]

Filled up with 91 yesterday and it was 32 baht/litre, which translates to around $3.50/gallon I just checked gas prices in the US and the average is around 2.50-2.60 gallon. Did Thailand recently introduce a new big tax on fuel? I remember there was some sort of tax hike a month or two ago, but I thought it was just 1 or 2 baht/litre.

Last year it was 45 baht a litre so i guess you are getting a good deal now for 91.If the oil goes up to the heights of last year expect to pay around 45 to 50

[thaihome]

The oil fund is still collecting extra tax, to repay the vast debt they ran-up, in Thaksin's pre-election subsidy a few years ago. He had worked out how to borrow from the future, now you're paying for it, but he got re-elected ... so that's all OK then.

Other governments also do this sort of thing ... and call it 'smoothing', which sounds better than 'cooking the books' !

Rather dated information. The oil fund went positive some time ago, currently with about 25 billion in cash and 10 billion in accumulated subsidy burden. They are lowering the contribution to the Oil Fund by Bt2 per litre as of today to offset the recent increase in excise taxes.

One of the big factors in the price of gasoline and diesel is the USD/THB exchange rate as Thailand imports some 1 million barrels a day and refiners pay USD for the oil and sell it in baht. The weaker the baht, the more expensive gasoline and diesel become.

TH

[steelepulse]

I remember the days of 45/litre, but that was at 140/barrel.

Thaihome I'd agree with you on the USD/THB, but the $$ has been showing weakness lately moving from 36 down to 34 which is around 7-8%, so theoritically petrol should have also moved that way.

[bonobo]

Gasohol was in the 16 baht range a few months ago when oil was at $35 per gallon. Since then, oil has shot up to $66 while gasoahol 91 has shot up to almost 28 baht.

Given that about 45% of gasoline prices are from the cost of oil, that means that gasohol 91 should be at around 23 baht now, not 28.  And that is ignoring factors such as a stonger baht in there, but it is also ignoring the 1+ baht added in taxes.  

Edited June 3, 2009 by bonobo

[caf]

The oil fund is still collecting extra tax, to repay the vast debt they ran-up, in Thaksin's pre-election subsidy a few years ago. He had worked out how to borrow from the future, now you're paying for it, but he got re-elected ... so that's all OK then.

Other governments also do this sort of thing ... and call it 'smoothing', which sounds better than 'cooking the books' !

Rather dated information. The oil fund went positive some time ago, currently with about 25 billion in cash and 10 billion in accumulated subsidy burden. They are lowering the contribution to the Oil Fund by Bt2 per litre as of today to offset the recent increase in excise taxes.

One of the big factors in the price of gasoline and diesel is the USD/THB exchange rate as Thailand imports some 1 million barrels a day and refiners pay USD for the oil and sell it in baht. The weaker the baht, the more expensive gasoline and diesel become.

TH

absolutely correct.

on this occasion Taksin is innocent but a good try to bring him into it.!

[IanForbes]

Hey, SOMEBODY has to pay the big raises the oil executives gave themselves don't they?

Locally here in BC it is now over $1.05 a litre. Two months ago it was $.93 a litre. Seven months ago it was $.87 a litre.

There are 4.4546 litres in an Imperial gallon and 3.785 litres in an American gallon.

[Pierrot]

The oil fund is still collecting extra tax, to repay the vast debt they ran-up, in Thaksin's pre-election subsidy a few years ago. He had worked out how to borrow from the future, now you're paying for it, but he got re-elected ... so that's all OK then.

Other governments also do this sort of thing ... and call it 'smoothing', which sounds better than 'cooking the books' !

Rather dated information. The oil fund went positive some time ago, currently with about 25 billion in cash and 10 billion in accumulated subsidy burden. They are lowering the contribution to the Oil Fund by Bt2 per litre as of today to offset the recent increase in excise taxes.

One of the big factors in the price of gasoline and diesel is the USD/THB exchange rate as Thailand imports some 1 million barrels a day and refiners pay USD for the oil and sell it in baht. The weaker the baht, the more expensive gasoline and diesel become.

TH

Nice try Ricardo !

[Abrak]

The Government recent increased the tax ceiling on petrol from Bt5 to Bt10 a litre but I am unsure if they have implemented any of the increase and if they have it is only Bt2.

Crude oil prices were up 25% last month along with commodities in general. I think it has almost doubled from its lows.

[mrtoad]

The Government recent increased the tax ceiling on petrol from Bt5 to Bt10 a litre but I am unsure if they have implemented any of the increase and if they have it is only Bt2.

Crude oil prices were up 25% last month along with commodities in general. I think it has almost doubled from its lows.

This is the main influence, and an increasing demand and less supply.

http://www.bunkerworld.com/prices/

http://www.iata.org/whatwedo/economics/fue...nitor/index.htm

Edited June 3, 2009 by mrtoad

[sorensen]

I remember the days of 45/litre, but that was at 140/barrel.

Thaihome I'd agree with you on the USD/THB, but the $$ has been showing weakness lately moving from 36 down to 34 which is around 7-8%, so theoritically petrol should have also moved that way.

Those were the good days, hope we will soon see numbers like that again!

Robert

[Abrak]

The Government recent increased the tax ceiling on petrol from Bt5 to Bt10 a litre but I am unsure if they have implemented any of the increase and if they have it is only Bt2.

Crude oil prices were up 25% last month along with commodities in general. I think it has almost doubled from its lows.

This is the main influence, and an increasing demand and less supply.

http://www.bunkerworld.com/prices/

http://www.iata.org/whatwedo/economics/fue...nitor/index.htm

Sorry, I looked at the links at they seemed to show prices rather than demand and supply.

It is obvious that prices are determined by demand and supply but the more interesting question is whether demand is increasing or supply falling or as you state both are happening at the same time.

[TopDogger]

I filled up with 95 yesterday and it came to just over 1000 for the tank..

http://www.eppo.go.th/retail_prices.html

แก๊สโซฮอล ออกเทน 95 (Gasohol 95 - E10) 28.54 28.54

แก๊สโซฮอล ออกเทน 95 (Gasohol 95 - E20) 26.24 26.24 - - - - - - - แก๊สโซฮอล ออกเทน 95 (Gasohol 95 - E85) 19.62 19.62

Whats the diff with the 3 different types? I thought there was only 1 till looking @ that..

[Ricardo]

The oil fund is still collecting extra tax, to repay the vast debt they ran-up, in Thaksin's pre-election subsidy a few years ago. He had worked out how to borrow from the future, now you're paying for it, but he got re-elected ... so that's all OK then.

Other governments also do this sort of thing ... and call it 'smoothing', which sounds better than 'cooking the books' !

Rather dated information. The oil fund went positive some time ago, currently with about 25 billion in cash and 10 billion in accumulated subsidy burden. They are lowering the contribution to the Oil Fund by Bt2 per litre as of today to offset the recent increase in excise taxes.

One of the big factors in the price of gasoline and diesel is the USD/THB exchange rate as Thailand imports some 1 million barrels a day and refiners pay USD for the oil and sell it in baht. The weaker the baht, the more expensive gasoline and diesel become.

TH

absolutely correct.

on this occasion Taksin is innocent but a good try to bring him into it.!

Nice try Ricardo !

I stand corrected, on the completion of repayment, by Thaihome.

But you other gentlemen mean to say, it was complete coincidence that Thai petrol/diesel-prices stayed low while world oil-prices soared, just prior to the 2005-election which Thaksin/TRT won. And the massive jump which I clearly recall, a week after the election was over, was purely coincidental ? Come on, it was an excellent trick, and it worked ! Give the man credit where credit is due !

[kevkev1888]

I'm confused about this gasahol stuff

In the UK we have Leaded, Unleaded and Deisel

Have an old Honda civic always put in 91 red pump can i use the cheaper gasahol or is that deisel I dont think it is cos ive seen motorbikes useing it?

If its not Deisel then what is????????

[bonobo]

I'm confused about this gasahol stuff

In the UK we have Leaded, Unleaded and Deisel

Have an old Honda civic always put in 91 red pump can i use the cheaper gasahol or is that deisel I dont think it is cos ive seen motorbikes useing it?

If its not Deisel then what is????????

Gasohol is regular gasoline mixed with ethanol.  Gasohol 91 does not give actually the same power as regular 91 (it has something to do with the ignition temperature, I 've been told.)  And you will probably get slightly less mileage.  BUt you should fill your tank with both, check the mileage, then calculate if the mileage loss, if any, is offset by the lower cost of gasohol.

While gasohol is supposedly there to lower pollution and save money by using less oil, creating the ethanol in the US, at least, costs more energy than it produces.  I've heard that Brazil breaks slithly in the favor of saving oil, but I don't know that for sure.

[nikster]

The green thing to do is to skip the gasohol stuff. It makes no sense whatsoever from an ecological standpoint. It's not efficient enough to do at a large scale, and when you grow fuel instead of rice food prices jump, people starve, etc.

They are still pushing it because - and here's a surprise, you'd never have guessed it! - some influential parties are heavily invested in ethanol and make tons of money off of it, or at least they were hoping to because now they are probably fighting to make the money back. Either way, it's about money.

I also have the feeling that the Gas prices in Thailand have risen much more sharply than the crude oil prices, so thanks for the various explanations.

[ozzydom]

Cnn stated this morning that gasoline was hitting $4 a gallon in the states, here in the Thailand sticks 91 is 33.5 baht per litre ,not a lot of difference .

Is not gasoline subsidised in the USA.?

[ubonjoe]

Gas prices in the US are not subsidized just taxed less than some countries.

The average price as of today is about $2.60 gallon. Source: http://www.gasbuddy.com/GB_Price_List.aspx?cntry=USA

[H2oDunc]

I can remember the fuss last year when gas prices were getting near the $4 a gallon. People were up in arms yet at the same time in the UK it worked out at nearly $11 a gallon You guys don't know what expensive gas is until you have had to live in the UK. Over 80% of the price of a gallon of gas goes straight to the Government. They even have a tax on a tax as they add a gas tax and then tax that price with VAT.

[wolfmanjack]

I can remember the fuss last year when gas prices were getting near the $4 a gallon. People were up in arms yet at the same time in the UK it worked out at nearly $11 a gallon You guys don't know what expensive gas is until you have had to live in the UK. Over 80% of the price of a gallon of gas goes straight to the Government. They even have a tax on a tax as they add a gas tax and then tax that price with VAT.

The UK does not have the distance that the people need to travel. In my home town we have 3 oil refineries and the price of gas was higher than in the next city which was 100 miles away and had no refineries. It was always a topic of complaint. I always thought the price should be higher with cities that had good public transportation and lower in cities like mine that had none due to too low of a population.

[longstebe]

Its certainly a weird one.

I think its all about the forseeable supply and demand.

It just hasn't made sense over the last year or so. From $140-$35 a barrel.

[onnut]

I use E20 in my Accord and that costs about 1,600 baht to fill right up. I had to use 95 last week because I could not find any E20 and that cost 2400 for a full tank. I still think petrol is much cheaper in Thailand than the UK. The Americans seem to get the better deal.

there are so many different types of fuel over here that it gets confusing.