Halt To Oil Levy Approved: Thailand

[NanLaew]

The Thai bike rider is way WAY ahead of all us 'farang loo mahk' and these green, energy saving initiatives. That's why they always take the tail light bulbs out on their bikes. Saves energy!

We need to learn from our gracious hosts instead of ridiculing them.

[RogueExpat]

This is one election promise that is going to cost Phua Thai big time.

Millions upon millions of Rai of Casava is going to become virtually worthless in the next few months, and who suffers?

The very people who voted for PT in the first place. Many Issan farmers will not be buying mobile phones or new pick-ups for the next few years, or the bail me out bank loans are approved at everybody else's expense.

But they are so blind in their loyalty they will still turn up for the next 1000B hand out & other missleading election promises & vote the same lot back in.

[JurgenG]

Someone correct me if I'm wrong, but I do not recall any government anywhere in the world reducing a tax on gasoline in the whole of human (gasoline) history.

This is insane at a time when all Thai towns and cities have polluted air from clogged roadways. Any responsible government should be increasing taxes to reduce dependence on vehicles, whether two- or four-wheeled. (Or three with some tuk-tuks.) With extra taxes you can begin the much-needed modernisation of the rail system.

Reduced use of vehicles might also lead to better health. Btw, how often do you see a Thai person walking in the city. I am in Chiang Mai, and the only people I see walking are farangs like myself (breathing in the diesel fumes as I wait for traffic lights to change....)

Spot on. You spoke my mind.

Spot on. You spoke my mind, also!

Spoken like a true selfish expat. Of course it's "insane" for you, someone who doesn't own a car and uses public transportation. What about those of us who don't live in the city and drive to work everyday???

I think this is a much needed releif, not only will it save us gas money, but will lower the costs of other products that have increased prices(such as rice, eggs, etc;) due to cost of transport.

If you have lived here long enough you would relize how much of a blessing this is instead of worrying about reducing dependence on vehicles. That is truly a selfish point of veiw that only takes those in cities and those without vehicles

into account.

Spot on. You spoke my mind.

I've two cars, not small ones, I spend more than 10,000 B / month in gas. It's going to be a nice saving starting from tomorrow.

And you're absolutely right about the cost of transport. It affects absolutely everything.

But if you're not involved in the local economy, there are things you can't understand.

[cme]

Someone correct me if I'm wrong, but I do not recall any government anywhere in the world reducing a tax on gasoline in the whole of human (gasoline) history.

This is insane at a time when all Thai towns and cities have polluted air from clogged roadways. Any responsible government should be increasing taxes to reduce dependence on vehicles, whether two- or four-wheeled. (Or three with some tuk-tuks.) With extra taxes you can begin the much-needed modernisation of the rail system.

Reduced use of vehicles might also lead to better health. Btw, how often do you see a Thai person walking in the city. I am in Chiang Mai, and the only people I see walking are farangs like myself (breathing in the diesel fumes as I wait for traffic lights to change....)

Spot on. You spoke my mind.

Don't know about you but where I live the roads aren't clogged and I've driven many a time from south to north and the only place with congestion on the way is around BKK. Thai roads are pretty empty compared to the rest of the world.

I agree, outside of Bangkok it's a pleasure to drive here, like it was in the UK when I started driving 50 years ago!!

Edited August 27, 2011 by cme

[Buchholz]

I look forward to a future dramatic rise in world oil prices (as has happened numerous times previously) with the cushioning of Thailand's Oil Fund removed.

When it's 60 baht a liter, it'll be interesting to see how its citizens cope.

.

[arthsch]

Someone correct me if I'm wrong, but I do not recall any government anywhere in the world reducing a tax on gasoline in the whole of human (gasoline) history.

This is insane at a time when all Thai towns and cities have polluted air from clogged roadways. Any responsible government should be increasing taxes to reduce dependence on vehicles, whether two- or four-wheeled. (Or three with some tuk-tuks.) With extra taxes you can begin the much-needed modernisation of the rail system.

Reduced use of vehicles might also lead to better health. Btw, how often do you see a Thai person walking in the city. I am in Chiang Mai, and the only people I see walking are farangs like myself (breathing in the diesel fumes as I wait for traffic lights to change....)

you will stand alone with your ridicolous ideas.I like falling prices.

[WarpSpeed]

The price of gasohol has not been reduced.

Only 91 and 95 octane petrol is reduced. which will assist the motorbike maniacs, but be of little use to the majority of car users. 95 octane petrol is now very hard to find.

It works in my favor!! Wooo hooo !!!

Edited August 27, 2011 by WarpSpeed

[bubba]

After that period, the Energy Fund Administration Institute (EFAI) will consider borrowing from financial institutions or issuing government bonds for an amount of Bt20 billion, which will be used to continue subsidies and will need to be approved by the EPPO.

Is this a sustainable policy?

The PT "promise" of raising minimum wage along with the 15K baht monthly wage guarantee for university degree holders and then all the step raises for others that will result is estimated to increase the government payroll by around 2 billion baht/month. So that combined with today's petrol tax cut will cost the government budget 4 billion baht/month, and we haven't even factored in the rest of the spending spree promised by PT, such as the credit cards for farmers (!), the tablets for [selected] schools, nor have we factored in the promised cut in corporate tax rates.

What I have not yet heard from Yingluck or anyone else: from which trees will they be harvesting all the money that will fund the increased spending and decreased revenue?

[cowslip]

Eerything we buy is transported by road......so it's nice to see a reduction in fuel costs. However we will end up paying in the end. oil companies will take up some of the savings themselves and in the end we wil be more vulnerable to the fluctuations of world oil prices.......and the got looks like it's on a one way road to bankruptcy with it's policies of profligacy

[cowslip]

Someone correct me if I'm wrong, but I do not recall any government anywhere in the world reducing a tax on gasoline in the whole of human (gasoline) history.

This is insane at a time when all Thai towns and cities have polluted air from clogged roadways. Any responsible government should be increasing taxes to reduce dependence on vehicles, whether two- or four-wheeled. (Or three with some tuk-tuks.) With extra taxes you can begin the much-needed modernisation of the rail system.

Reduced use of vehicles might also lead to better health. Btw, how often do you see a Thai person walking in the city. I am in Chiang Mai, and the only people I see walking are farangs like myself (breathing in the diesel fumes as I wait for traffic lights to change....)

you will stand alone with your ridicolous ideas.I like falling prices.

I fear this poster may not be done but sure as anything is standing with the sheep!

[OzMick]

Fuel products have always been considered a tax tit for governments; good to see at least one government weaning themselves and allowing the money to stay in the peoples' pockets.

Any government can basically only take in (through taxes) and give out (running the country) money on a break-even basis. If they reduce the tax on fuel they will either have to reign in spending, or take it back in a different way. Same goes for the increase in basic wage (which is a great idea). But there's no free lunches (despite what the government will promise in an election). It's all a money-go-round, and if they reduce the fuel tax they will find another way to increase taxes elsewhere.

All right!!! Just went and filled-up the Toyota Fortuner with diesel. The fillup cost me about 180 baht less...now I can go out and buy a couple of small trees to plant to satisfy the tree huggers; or just go to Lotus and buy a 180 baht more of stuff....but that would mean I would get charged the 7% VAT so I don't want to do that because that gives more tax money back to the govt. I know, I'll just go to the local market and buy a 180 baht more vegetables and fish for the dinner table. Or maybe just save that 180 baht towards the next purchase of diesel....or my god, if I do that Thailand will use a little more diesel, the worldwide price of oil will shoot up again and it will increase global warming. So, I guess I better go buy some small trees....and I don't think the tree guy charges VAT.

Or you buy B180 of government bonds, which they are selling to pay for the tax break. But then with ballooning government debt, it's likely to be a pretty lousy investment.

[Honkytowner]

Maybe I don't understand how this oil fund levy works ... or maybe I'm just thick.

Why is THB3 billion needed to compensate retailers for losses on fuel remaining in storage? If the oil levy and tax are calculated from the net cost of fuel as added imposts, surely the actual fuel price (for both seller and buyer) remains the same? The only loser, so far as I can make out, is the government.

[PETERTHEEATER]

I struggle to make sense of this. If the gasoline content of Gasohol is not also reduced, the price differential between Gasohol 91 and Regular Gasoline 91 will be very small in which case I would shift back to Regular. The performance gain is noticeable but when you run on Gasohol all the time you get used to the vehicle performance and accept it as normal.

Not much point in promoting Gasohol fuels.

But, like all taxes, if it comes off engine fuels it will go on elsewhere.

[mca]

I wonder how many on here would be venting at the government for their crackpot scheme should the Dems have won the election and instituted it? Looks like a case of "damned if they do, damned if they don't " for PTP on TVF.

[mccw]

Stupid, stupid, stupid.

The idea behind the original policy was to increase the percentage of liquid fuels produced domestically within Thailand. This is absolutely critical given the extreme volatility and shortages in the global oil market. It is going to be even more critical in the future.

Meanwhile, the PT seems insistent on killing the fledgling industry within Thailand, so that when it really becomes absolutely essential, it won't be here at all.

Morons.

True true. Just the beginning of a long line of short sighted foolish policies that will cost the nation a fortune and leave it in a worse state for the medium to long term

[SICHONSTEVE]

Why the eff do you need 2 BIG cars? Do pray enlighten us, you who waste the earth's resources on your selfish modes of transport.

Oh, sorry, I forgot...you, as yet another selfish expat, have chosen to live out in the boonies, away from all the riff-raff? Sorry, you are probably living in a village, and need to impress the locals with your BIG cars which give you BIG face.

And so on, blah blah blah,. Seek not for whom the bell tolls, brother, it tolls for thee. The bell of peak oil perhaps. Trouble is, people like you can survive peak oil with no problem....

I am indeed involved in the local economy!! And i understand people like you perfectly.

My Thai wife and I have just bought a brand new Honda Freed and instantly converted it to LPG (just as we did with our previous car) this has literally saved us thousands of pounds as the mileage is the same as with petrol (benzene 91) but it costs us a pound a gallon (11.5 baht a litre).

People think we are crazy in changing a new car to LPG, but we know otherwise - best thing we ever did, relating to cars!!! It costs about 800 pounds to have LPG fitted and pays itself off in no time, especially if you do quite a bit of travelling. We don't hesitate to go to BKK now whereas it was a big decision before as it is 750 km from where we live and it gives us freedom to go anywhere - to Bkk and back (1,500 km) for about 30 quid!!!

[OzMick]

I wonder how many on here would be venting at the government for their crackpot scheme should the Dems have won the election and instituted it? Looks like a case of "damned if they do, damned if they don't " for PTP on TVF.

You might like to review your logic in this post. It's a crackpot scheme, the Democrats didn't win and didn't institute it, PTP did both, and you can't find a way to refute justifiable criticism of the scheme, so it must be political bias on the part of the critics. Uh-huh.

[swerver]

I guess this isn't good news for PTT, since they only sell gasohol products.

Guess it's also not good for the ethanol industry in Thailand, all the way from the cassava farmers through the ethanol producers. Overnight, nobody will be buying gasohol. Contrary to what Monty posted above regarding an "extra 0.1% performance" from regular petrol, gasohol actually contains about 5% less energy than regular petrol since ethanol contains less energy than petrol. The result is that you will get at least 5% less mileage from gasohol compared to petrol. All cars that can use gasohol can run on regular petrol, so why would anyone buy gasohol now?

And what about the massive loss of revenue to the Government, which was apparently used to subsidise LPG which is used by nearly every Thai family for cooking - even the ones who are not consuming petrol or diesel?

Finally some one who knows what he is talking about.

Unfortunately there are not tooooo many of them in Thailand - Thais or Farang.

[sexy man]

The price of gasohol has not been reduced.

Only 91 and 95 octane petrol is reduced. which will assist the motorbike maniacs, but be of little use to the majority of car users. 95 octane petrol is now very hard to find.

If your car runs on Gasohol it will run on 91 or 95 Octane

if you can find it in pattaya , it's a no-go

[Crushdepth]

I wonder how many on here would be venting at the government for their crackpot scheme should the Dems have won the election and instituted it? Looks like a case of "damned if they do, damned if they don't " for PTP on TVF.

I have no problem with this policy if the government can afford it. I just don't think they can, and am somewhat underwhelmed by the credentials of their brilliant economic team.

[Interman]

Stupid, stupid, stupid.

The idea behind the original policy was to increase the percentage of liquid fuels produced domestically within Thailand. This is absolutely critical given the extreme volatility and shortages in the global oil market. It is going to be even more critical in the future.

Meanwhile, the PT seems insistent on killing the fledgling industry within Thailand, so that when it really becomes absolutely essential, it won't be here at all.

Morons.

You believe the prices are high because of a shortage??? lol......

Someone still thinks what comes off CNN is the truth and nothing but the truth. Wake up.

www.infowars.com

[Felt 35]

Someone correct me if I'm wrong, but I do not recall any government anywhere in the world reducing a tax on gasoline in the whole of human (gasoline) history.

This is insane at a time when all Thai towns and cities have polluted air from clogged roadways. Any responsible government should be increasing taxes to reduce dependence on vehicles, whether two- or four-wheeled. (Or three with some tuk-tuks.) With extra taxes you can begin the much-needed modernisation of the rail system.

Reduced use of vehicles might also lead to better health. Btw, how often do you see a Thai person walking in the city. I am in Chiang Mai, and the only people I see walking are farangs like myself (breathing in the diesel fumes as I wait for traffic lights to change....)

Well said

[Pib]

Someone correct me if I'm wrong, but I do not recall any government anywhere in the world reducing a tax on gasoline in the whole of human (gasoline) history.

This is insane at a time when all Thai towns and cities have polluted air from clogged roadways. Any responsible government should be increasing taxes to reduce dependence on vehicles, whether two- or four-wheeled. (Or three with some tuk-tuks.) With extra taxes you can begin the much-needed modernisation of the rail system.

Reduced use of vehicles might also lead to better health. Btw, how often do you see a Thai person walking in the city. I am in Chiang Mai, and the only people I see walking are farangs like myself (breathing in the diesel fumes as I wait for traffic lights to change....)

Well said

Sure...a rail link to/through every village that runs 24/7. And here I thought the millions of people in Bangkok walking around were real people; guess I was imagining all of that.

P.S. I would like to see some of the thousands upon thousands taxis in Bangkok get off the road; but most of them are pretty fuel efficient since they use NGV. And I'm not going to touch the subject of Thais giving up their motorcycles.

[edwinchester]

I stand to be corrected but isn't the levy designed to smooth out fluctuations and sudden increases in fuel prices? If so expect to see far higher spikes in the price of petrol and diesel if we get similar rises in the price of oil as two or three years ago.

[Derifo]

I will just need to compare the pump prices... if Gasoline prices are the same or only slightly higher than Gasohol prices I will be switching to Gasoline...

I assume that many others will do the same. So all this really does is remove the incentive for people to use alternative fuels...

I did that this morning. It didn't make any sense buying E20 when the difference in price with gasoline 91 is insignificant.

[softgeorge]

I will just need to compare the pump prices... if Gasoline prices are the same or only slightly higher than Gasohol prices I will be switching to Gasoline...

I assume that many others will do the same. So all this really does is remove the incentive for people to use alternative fuels...

I did that this morning. It didn't make any sense buying E20 when the difference in price with gasoline 91 is insignificant.

I am confused, what is Gasoline, gasahol? I asked my thai wife what is the difference and she does not know these terms either. Gasoline is Kerosine right? and gasohol is gas, same as you use for thai stoves. So what has gas got to do with the oil levy? I can understand gasoline (kerosine) would matter as it is a by product of petrol.

[ratcatcher]

I will just need to compare the pump prices... if Gasoline prices are the same or only slightly higher than Gasohol prices I will be switching to Gasoline...

I assume that many others will do the same. So all this really does is remove the incentive for people to use alternative fuels...

I did that this morning. It didn't make any sense buying E20 when the difference in price with gasoline 91 is insignificant.

I am confused, what is Gasoline, gasahol? I asked my thai wife what is the difference and she does not know these terms either. Gasoline is Kerosine right? and gasohol is gas, same as you use for thai stoves. So what has gas got to do with the oil levy? I can understand gasoline (kerosine) would matter as it is a by product of petrol.

AFAIK

Gasoline is the N.American version of Petrol.

Gasohol is a mixture of ethanol and gasoline

Kerosene is sometimes called Paraffin and is used also as jet fuel.

LPG is Liquified Petroleum Gas a mixture of propane & butane..

LNG (NGV) is Liquified natural Gas (CNG).

Perhaps others can be more enlightening with more fuelish information.

[kraplung]

Here's a switch. Thaksin used to keep the petrol price low before an election then raise it afterwards. Same principle though, keep the plebs sweet and off their guard.

[softgeorge]

I will just need to compare the pump prices... if Gasoline prices are the same or only slightly higher than Gasohol prices I will be switching to Gasoline...

I assume that many others will do the same. So all this really does is remove the incentive for people to use alternative fuels...

I did that this morning. It didn't make any sense buying E20 when the difference in price with gasoline 91 is insignificant.

I am confused, what is Gasoline, gasahol? I asked my thai wife what is the difference and she does not know these terms either. Gasoline is Kerosine right? and gasohol is gas, same as you use for thai stoves. So what has gas got to do with the oil levy? I can understand gasoline (kerosine) would matter as it is a by product of petrol.

AFAIK

Gasoline is the N.American version of Petrol.

Gasohol is a mixture of ethanol and gasoline

Kerosene is sometimes called Paraffin and is used also as jet fuel.

LPG is Liquified Petroleum Gas a mixture of propane & butane..

LNG (NGV) is Liquified natural Gas (CNG).

Perhaps others can be more enlightening with more fuelish information.

Ok so Gasoline is actually petroleum. I wish the Americans would conform with the rest of the world and simply call it petrol would be a lot less confusing. Gasahol is an American blend of Petroleum and alchol? I believe this was outlawed in Australia a few years back as it was destroying engines. Why is it still being used in Thailand. Natural gas I understand as it is conectect to almost every home in australia just as water is comes straight out of the ground into homes.

[softgeorge]

Here's a switch. Thaksin used to keep the petrol price low before an election then raise it afterwards. Same principle though, keep the plebs sweet and off their guard.

Every single government be it federal (country) or local do exactly the same, this priniciple is not eunique to Thailand or thaksin.