Industrial Lpg Price Going Up By 3 Baht/Kg Tomorrow

[Dario]

Just saw on TV that tomorrow July 19th the industrial LPG price is going up by 3 Baht per kilogram (3 Baht every quarter they say to replenish the oil fund - to keep the diesel price at 29.99 Baht!). Does that affect LPG for cars? Because I was just thinking of installing LPG in my car.

[katabeachbum]

I would expect all kinds of LPG supplies to be approx 20 baht/liter, 40 baht/Kg within a year, and then float according to market price. There is no reason I using 91 petrol should pay for your LPG

[WarpSpeed]

Better hurry up OP so you can take advantage of the low price while it's here, but even at 20 it's still worth while once the system cost is recovered..

[MoonRiverOasis]

Diesel currently has a 1.3 Baht/L levy the oil fund, so it's all about replenishing the fund - no doubt a necessary measure before the system and it subsidies are scrapped (again).

Note that the oil fund only subsidised diesel prices for a few months, and the only fuels it currently subsidizes are Gasohol E20 (1.3 Baht/L) and E85 (13.5 Baht/L) - all other fuels currently pay into it.

The LPG levy as of yesterday was 1.0994 Baht/KG BTW, so it's levy is just increasing - it's not new for LPG to be paying into it

[undercover]

Do you think the aim is to make the price for LPG at the pumps just under the price of diesel ?

Will this also effect household cooking gas ?

[janverbeem]

Diesel currently has a 1.3 Baht/L levy the oil fund, so it's all about replenishing the fund - no doubt a necessary measure before the system and it subsidies are scrapped (again).

Note that the oil fund only subsidised diesel prices for a few months, and the only fuels it currently subsidizes are Gasohol E20 (1.3 Baht/L) and E85 (13.5 Baht/L) - all other fuels currently pay into it.

The LPG levy as of yesterday was 1.0994 Baht/KG BTW, so it's levy is just increasing - it's not new for LPG to be paying into it

So those green fuels like E20,E85 and B5 which were created to counter the rising oil price are in fact much more expensive than oil even at record prices.

[aussiebebe]

Do you think the aim is to make the price for LPG at the pumps just under the price of diesel ?

Will this also effect household cooking gas ?

Good questions; I think the aim is to move consumers towards domestically produced CNG (aka methane, well mostly). I believe LPG used for cooking will still be subsidized. The issue is that Thailand used to export LPG but then in response to the spike in global oil prices in 2007-8, the government created subsidies to help motorists. You've got to put this in context; the government was pursuing lots of populist policies like free utilities, free transport etc. The subsidy program meant Thailand became a net importer of LPG despite the clarity of a long-term governmental preference for CNG; all new cars have only ever been offered with CNG equipment, never LPG.

I commented some months ago in another thread that I was suspicious as to why companies offering LPG conversions were marketing so aggressively - the answer now seems clearer - we are looking at a 60%+ rise in LPG prices over the next year. At that price, LPG offers no financial incentive to motorists. The businesses reliant on LPG will suffer some short-term losses but most likely convert to using CNG.

[WarpSpeed]

Diesel currently has a 1.3 Baht/L levy the oil fund, so it's all about replenishing the fund - no doubt a necessary measure before the system and it subsidies are scrapped (again).

Note that the oil fund only subsidised diesel prices for a few months, and the only fuels it currently subsidizes are Gasohol E20 (1.3 Baht/L) and E85 (13.5 Baht/L) - all other fuels currently pay into it.

The LPG levy as of yesterday was 1.0994 Baht/KG BTW, so it's levy is just increasing - it's not new for LPG to be paying into it

So those green fuels like E20,E85 and B5 which were created to counter the rising oil price are in fact much more expensive than oil even at record prices.

Never saw them promoted as countering rising oil prices but rather offering alternative energy sources..

[janverbeem]

Diesel currently has a 1.3 Baht/L levy the oil fund, so it's all about replenishing the fund - no doubt a necessary measure before the system and it subsidies are scrapped (again).

Note that the oil fund only subsidised diesel prices for a few months, and the only fuels it currently subsidizes are Gasohol E20 (1.3 Baht/L) and E85 (13.5 Baht/L) - all other fuels currently pay into it.

The LPG levy as of yesterday was 1.0994 Baht/KG BTW, so it's levy is just increasing - it's not new for LPG to be paying into it

So those green fuels like E20,E85 and B5 which were created to counter the rising oil price are in fact much more expensive than oil even at record prices.

Never saw them promoted as countering rising oil prices but rather offering alternative energy sources..

So what is the point of offering an alternative energy source if it doesn't have any price advantages?

[katabeachbum]

Diesel currently has a 1.3 Baht/L levy the oil fund, so it's all about replenishing the fund - no doubt a necessary measure before the system and it subsidies are scrapped (again).

Note that the oil fund only subsidised diesel prices for a few months, and the only fuels it currently subsidizes are Gasohol E20 (1.3 Baht/L) and E85 (13.5 Baht/L) - all other fuels currently pay into it.

The LPG levy as of yesterday was 1.0994 Baht/KG BTW, so it's levy is just increasing - it's not new for LPG to be paying into it

So those green fuels like E20,E85 and B5 which were created to counter the rising oil price are in fact much more expensive than oil even at record prices.

Never saw them promoted as countering rising oil prices but rather offering alternative energy sources..

So what is the point of offering an alternative energy source if it doesn't have any price advantages?

The alternative fuels like ethanol and biodiesel are domestic products, replaces imported (us$) oil

CNg was also on this list, but domestic CNG does not cover present consumption, so some imported

[WarpSpeed]

Diesel currently has a 1.3 Baht/L levy the oil fund, so it's all about replenishing the fund - no doubt a necessary measure before the system and it subsidies are scrapped (again).

Note that the oil fund only subsidised diesel prices for a few months, and the only fuels it currently subsidizes are Gasohol E20 (1.3 Baht/L) and E85 (13.5 Baht/L) - all other fuels currently pay into it.

The LPG levy as of yesterday was 1.0994 Baht/KG BTW, so it's levy is just increasing - it's not new for LPG to be paying into it

So those green fuels like E20,E85 and B5 which were created to counter the rising oil price are in fact much more expensive than oil even at record prices.

Never saw them promoted as countering rising oil prices but rather offering alternative energy sources..

So what is the point of offering an alternative energy source if it doesn't have any price advantages?

Because the primary source is getting more difficult to find and extract and has a limited future?

And is not as clean for the environment.. I know, I know that last point is debatable but that's the sales pitch anyways..

Edited July 20, 2011 by WarpSpeed

[MoonRiverOasis]

It appears this didn't happen after all - the reference price remains at 18.13 Baht/KG, and the oil fund levy as of today remains at 1.0994 Baht/KG.