PM Yingluck To Kick Off The Energy Credit Card Scheme

[webfact]

PM to Kick Off the Energy Credit Card Scheme

The government's energy card scheme will be effective from today

Prime Minister Yingluck Shinawatra this morning presided over the launch of the government's energy credit card scheme at the Impact Arena Muang Thong Thani.

The government claimed that the project would relieve the burden for drivers of public vehicles such as taxis, three-wheel cars and public vans for filling up on natural gas for vehicles or NGV at cheaper prices.

Those who enrolled their names with the Energy Minister will receive a card, containing 3,000 baht in credit and will get almost 9,000 baht discount.

The energy credit card scheme has been kicked off by the Pheu Thai government as it promised during the election campaigning.

Earlier, the government has successfully cutting oil fund collection.

Meanwhile, taxi drivers has requested the government to reconsider the NGV prices hiking which is set in next January.

In response, the Premiere said the Energy Minister is now studying details-in depth.

-- Tan Network 2011-12-15

[pimay11]

One of the definitions of Scheme that in my opinion applies to this. Just another vote buying tactic.

verb

Make plans especially in a devious way of doing something wrong.

[Buchholz]

The government found nearly a million of these unused cards just laying around gathering dust and so decided to use them for the new Energy card with only a minor revision.

.

[LuckyLew]

Can someone please tell me where Thailand is getting all this money from?

The list goes on and on about spending money

Where is all the revenue coming from to pay for all these projects?

[AleG]

Can someone please tell me where Thailand is getting all this money from?

The list goes on and on about spending money

Where is all the revenue coming from to pay for all these projects?

Well, from taxation of course. That's why one of the very first things PTP set to do was to reduce corporate taxes. That should take care of balancing the budget right away...

The problem with having yet another Shinawatra clan member at the helm of the country is that to that family the concept of tax is completely alien. They just don't do taxes, you know?

[1bbcd5]

Ahh! I stand corrected then, Thanks for clearing that up.

[webfact]

NGV PRICE FLOAT

Lackluster launch of energy credit card

The Nation

Prime Minister Yingluck Shinawatra today presided over the Energy Ministry's launch of the energy credit card scheme.

The credit card, to be issued to public vehicle drivers ahead of NGV price increases, drew little supports from the drivers who are fearful that the subsidy would not completely cover the higher cost.

The ministry aims to raise the NGV price in January, to reflect the actual cost. PTT, the sole provider of the gas, claims that it has shouldered tens of billion each year as the gas is marketed below actual cost. To win more supports, the ministry on Dec 14 agreed to raise the eligible monthly purchase value from Bt6,000 to Bt9,000. With the cards, each driver will be given Bt3,000 credit per month and a discount of Bt0.50-Bt2 per kg but their monthly purchase must not exceed Bt9,000.

According to Energy Minister Pichai Naripthaphan, 100 taxi, 35 public vans and 15 three-wheel taxis have joined the scheme.

From now until Dec 24, all interested can apply to join the scheme at Impact Muang Thong Thani Hall 9.

Following the launch today, the drivers can use the credits immediately while the discounts will be available from Jan 16 onwards.

According to DBS Vickers Securities (Thailand), PTT is currently subsidising NGV of Bt10 billion per year, representing 10 per cent of its 2011 earnings. It is in the plan that the NGV retail price would be raised from Bt8.5 per kg, to Bt12.5 per kg for public transport use and Bt14.5 per kg for own use by Dec 2012 (or by Bt0.5 per kg per month). The price increase, if going as planned, will reduce PTT's burden by an estimated Bt7 billion per annum from 2013 onwards based on current demand load.

-- The Nation 2011-12-15

[hellodolly]

So what happens if they don't pay the bill.

Do they get to keep the card.

Sounds to me like just another way for them to make more money.

Free fuel

[CMX]

This is, in fact, a way of raising prices on a clean fuel in such a way as to make it more palatable to commercial drivers (who could take a concerted action) in the capital. According to the article, it will reduce the government's cost of supporting clean fuel overall.

The general population, having purchased new CNG vehicles (at a higher price), will be paying almost half again in a year's time for what costs now 8.5/L, but still cheaper by 1/2 to 1/3 of diesel/petrol. All these efforts were a part of taking Bangkok off a danger list regarding pollution, providing a healthier environment, and attracting tourists: Less greenhouse gas and less soot.

I'm not exactly sure what will occur to LPG, but government have an interest in using CNG more - as natural gas is in such supply that it can be exported (as is the case with Malaysia). LPG, on the other hand, is an import, so I assume that it will go above CNG in price.

Young people, of course, will look upon these in retrospect as halcyon energy days.

[siampolee]

I presume that the people who actually receive these 'credit cards' are aware that there is an obligation to pay the bill when it comes in or are they under the impression it is a free get me fuel card ?

Presumably there is an interest charge on overdue amounts?

The whole scheme will in my view be indeed a wonderful debt trap for the greater majority of the card holders.

Just watch those 20% a month interest loan providers lining up to bleed the suckers dry.

[TAWP]

Yet again the government intrusion into the market place is pushed as policy by a government most interested in looking like their doing people nice favours.

[Buchholz]

The only time you'll ever see this billionairess in a regular Bangkok taxi.

Waving from one of the new credit card holder's taxi

Khaosod newspaper (article in Thai)

http://www.khaosod.co.th/view_news.php?newsid=TUROd01ERXdOREUyTVRJMU5BPT0=&sectionid=TURNd01RPT0=&day=TWpBeE1TMHhNaTB4Tmc9PQ==

[OzMick]

Gas price for a taxi increased by ~50%, but driver can get subsidy with card up to B9000.

I would estimate that a taxi would use at least B600/day, so after 15 days (15 x 600=9,000) his fuel cost has increased by ~50% (unless he can pay a bribe and get 2 cards??). Unreasonable to expect a fare rise in the New Year?

[welbymd]

Sounds like another form of "vote buying". What happens when the money is not paid back?

[Buchholz]

Sounds like another form of "vote buying". What happens when the money is not paid back?

Then you and everyone else who pays tax picks up the bill.

Even after just a few months in operation, the scam is already reeling from bad debt by non-payment of bills by the cardholders.

.

[Buchholz]

Can someone please tell me where Thailand is getting all this money from?

The list goes on and on about spending money

Where is all the revenue coming from to pay for all these projects?

Taxpayers

.

[Mosha]

Reminds of the loan system the convicted ex pm introduced. Certain people thought it was a gift from him and not a loan.

[GentlemanJim]

According to Energy Minister Pichai Naripthaphan, 100 taxi, 35 public vans and 15 three-wheel taxis have joined the scheme

What a roaring success of a scheme this one is I bet they have budgeted billions for this one. I wonder where the money for all that unused 'credit' will go?

[rubl]

To win more supports, the ministry on Dec 14 agreed to raise the eligible monthly purchase value from Bt6,000 to Bt9,000. With the cards, each driver will be given Bt3,000 credit per month and a discount of Bt0.50-Bt2 per kg but their monthly purchase must not exceed Bt9,000.

Following the launch today, the drivers can use the credits immediately while the discounts will be available from Jan 16 onwards.

Let's see, hmmm. Te monthly purchase owith the card must not (cannot?) exceed THB 9,000, credit is THB 3,000. That seems to suggest that ONLY upto THB 3,000 can be paid back in installments, but only as long as the credit line is not exceeded, the additional THB 6,000 max needs to be repaid immediately at the end of every month?

I guess the discounts starting January 16th will be in 2013?

[Buchholz]

PM to Kick Off the Energy Credit Card Scheme

Five months later...

Government Ignores Plea to Cancel Energy Credit Card Program

The Energy Ministry is planning to continue the energy credit card program despite taxi operators' plea to cancel it as it has failed to respond to their needs.

President of Siam Taxi Co-operative Witoon Naewpanij said that the government has been warned since the beginning that the energy credit card program does not respond to taxi operators' needs, which is the main reason why the program has not been well received.

Witoon said that taxi drivers prefer cash, and that he is not surprised to see bad debts accumulated under the program, as the drivers need cash to cover their daily expenses, unlike salaried workers who could plan their monthly spending in advance.

The taxi driver representative said that the government should look after their welfare and address high LPG and NGV prices instead. Most importantly, he wants the government to increase the number of natural gas stations.

Meanwhile, Assistant to the Energy Minister Wichianchote Sukchotrat, who is also the head of the energy credit card program, insists that the government will continue and upgrade the program, which was designed to help public transport operators in the current time of high living costs.

-- Tan Network 2012-05-17