New Gasoline Price Hike

[george]

New gasoline price hike

BANGKOK: -- The prices of premium and regular gasoline will be Bt0.40 higher on Wednesday, representing the fourth increase since the beginning of this year.

The price hike came hot on the heels of today's Bt0.60 increase of diesel fuel to Bt15.19 per litre.

Starting tomorrow morning, motorists in Bangkok and outlying areas will have to pay Bt20.89 per litre for 95 premium gasoline, while 91 premium gasoline will be Bt20.09 per litre.

Meanwhile, Energy Minister Prommin Lertsuridej insisted that the price hike of diesel fuel would increase the overall transportation cost by only one percent, while the economic growth would remain at 5.5-6.5 percent and inflation not higher than 3-3.5 percent.

Somchai Chitsuchon, Research Director of Thailand Development and Research Institute (TDRI), said the Bt0.60 per litre increase of diesel fuel was minimal and would not affect the country's economy.

He was, however, concerned that the private sector would have difficulties adjusting its competitive edge if the Oil Fund continues subsidising diesel by Bt3.0 per litre.

--TNA 2005-02-22

[george]

Govt to further raise diesel prices when it sees fit

BANGKOK: -- While the government wants to see diesel prices rise by market mechanism, it could adjust the prices only when the situation is deemed appropriate, Energy Minister Prommin Lertsuridej disclosed today.

He expressed confidence that the government’s decision to raise diesel prices to 15.19 baht per liter, effective as of today, would increase product costs by not exceeding 1%.

The Commerce Ministry had closely monitored the product price hike on the domestic market, he said, adding that there should be no hoarding since the government had long signaled a lift in the capped diesel prices.

Dr. Prommin affirmed that the government wanted the diesel prices to reflect the actual market cost in parallel with higher fuel prices on the global market.

However, the government needs to continue to peg the local diesel prices and gradually allow the capped prices to edge up when it is appropriate.

“Given the economic projections by the National Economic and Social Development Board (NESDB), the Bank of Thailand (BOT), and the Finance Ministry, we believe the economy will continue to grow at a range of 5.5-6.5% although diesel prices are floated," he said.

“We will try to keep inflation rates at no more than 3%. We will exercise caution and consider the country’s continued economic growth as a main factor when we have to decide on a further increase in diesel prices next time,” he added.

On the Stock Exchange of Thailand (SET) index plunge after the government’s announcement on the diesel price rise yesterday, the minister said he believed it would be a short-term impact.

--TNA 2005-02-22

[apetley]

Hey, wouldn't it be fun if Thailand adopted a dual pricing policy for fuel too?!

Us Brits quite happily pay 60Bht per litre in old blighty.

[Digger]

Diesel is going to full market price sooner rather than later - equivalent to a 15% increase in price - the govt has no money to pay for the subsidy and hence it must go. Just wait for the excuses to increase prices all round and see what happens to inflation figures and the economy in general.

[ovenman]

Just wait for the excuses to increase prices all round and see what happens to inflation figures and the economy in general.

The Thai government has declared that the fuel price increses will cause no adverse effect to the economy. Who are we to doubt the word of Mr. Big?

[Lars]

If you listen to what the government and kh Toxin say,nothing really has any bad effect on thai economy,whatever happens the economy will keep on growing.

He knows how to run a country,the rest of the world leaders have a lot to learn from Toxin.

[Pattaya_Fox]

The Light Crude Oil price rose to over $51 a barrel yesterday in the US.

[george]

Diesel price floatation schedule is not definite

BANGKOK: -- Energy Minister Prommin Lertsuridej yesterday reiterated the ministry had not yet had a definite schedule for the floatation of diesel prices, but would gradually raise the capped prices to ease the State Oil Fund’s burdens.

He said the ministry would not wait to float the diesel prices when the Fund’s debt burdens were completely settled. Currently, the Fund has bored the burden of more than 68 billion baht and needed at least 4-7 years for repayment.

The ministry would decide to further increase the capped prices in each time when the situation was deemed appropriate so the public would be least affected and the business sector could adjust itself for long-term competition.

He repeated his call for the public to help conserve energy and consume it efficiently.

The minister said the diesel prices would be allowed to increase to reflect their actual costs. However, the prices must be gradually adjusted before being floated like gasoline.

The industrial sector set a target to reduce the energy consumption by 10% when the diesel prices were capped last year.

As well, the government had aggressively promoted the consumption of alternative energy such as gasohol and bio-diesel.

Dr. Prommin brushed aside the news that some product prices had gradually increased to reflect their actual costs, saying the increased portion was small.

--TNA 2005-02-24

[taxexile]

Us Brits quite happily pay 60Bht per litre in old blighty.

no brit pays the worlds 2nd highest fuel price happily , 85% of that is government tax.

but if any government wants to raise some revenue quickly , to pay for yet another hair brained policy decision then that is the way to do it.

[marquess]

inflation figures and the economy in general.

I just hope that if inflation hits 10% or more due to fuel price increases, one would hope that the rates of pay would increase conmensurately?