Energy expert: Fuel prices to skyrocket

BANGKOK, 15 January 2012 (NNT) – Energy expert Manoon Siriwan said that fuel prices could soar up once the government implements its energy restructuring plan.

The plan includes a cancellation of diesel price subsidy, which has been pegged below THB30 per liter and resumption of both oil fund levies and diesel excise collection. He admitted that these measures would inevitably prompt energy prices to increase, particularly for the higher quality gasoline whose prices need to be adjusted in line with the Euro IV fuel standards.

Mr. Manoon therefore predicted that Thailand could face a worrisome oil price situation. However, he said that the restructuring plan should be done in order to reflect the true cost of oil prices.

As for the situation globally, the energy expert stated that the tension between the US and Iran should be closely monitored. He said if the situation got worse, leading to a temporary closure of Iran’s key gulf oil route or a halt in oil exports, crude oil price could increase by US50$ per barrel.

Mr. Manoon estimated that crude oil price could stand at approximately US120$ per barrel.

-- NNT 2012-01-15

Just as well the minimum wage is going to be 300 baht a day isn't it. Isn't it?

Government fortune telling par excellence!

This is just a ploy to get the money back as they give it to the people so they stay as poor as before even if they make more money (300bt/day)

The price increase could have been better managed by staggering the increases over a year or two. The priority seems to be oil company profits rather than keeping prices affordable, hence why its not staggered.

Go figure: Shinawatra government=making money for vested interests, not helping the people.

I am no economist, but expect a sudden inflation hike. Everything is related to fuel costs so expect alot of things to go up in price.

There has been no real government control on fuel price in the past 4 months. Transport charge increased, refining margin increased, pump price lags further behind crude price drop, but follows immediately when crude cost raises. Wonder if the government is still buying Russian diesel at inflated prices?.

Just as well the minimum wage is going to be 300 baht a day isn't it. Isn't it?

They give with the right hand and take it back with the left!

So the generous salary increase we are giving now is going to be eaten up soon by increased prices as the inflation sky-rockets...

Just as well the minimum wage is going to be 300 baht a day isn't it. Isn't it?

In many countries in Europe are the fuel prices 1.75 Euro and many people are unemployed.So you're real naive.

Watch the price of Brent crude, if it rises so does the pump price on a thursday and all companies by the same figure, Brent crude fell slightly at the end of the week so am expecting pump prices may fall this coming week with a bit of luck and no upward movement. Thailand does not get its oil from the North Sea but it is usually a higher price than West Texas Intermediate which gives more scope.

As far as other things are concerned, keep the population poor and uneducated ( no school achievements paper ) and you keep them in their place, under control. Must be wasting a lot of potential talent.

This move will not help inward investment, on the face of it and sure will not help tourism coming on the back of hikes in passenger duties and carbon taxes. Returning tourists will soon spread the word if this is allowed to get out of hand.

Just as well the minimum wage is going to be 300 baht a day isn't it. Isn't it?

In many countries in Europe are the fuel prices 1.75 Euro and many people are unemployed.So you're real naive.

I think it was a tongue in cheek remark.

fuel prices to go further very true if tensions between US and iran escalate

As far as Minimum wage goes thailand should be grateful they'll actually put up the unemployment rate in terms of the hospitality industry. ( The reason simply put low season is 7 months of the year and 5 months of high season, and thanks to destructive thailand politics the tourism industry here as been on a constant decline, add on the top of that europe is going most likely default or declare bankruptcy by then say hello to massive unemployment.

The price increase could have been better managed by staggering the increases over a year or two. The priority seems to be oil company profits rather than keeping prices affordable, hence why its not staggered.

Go figure: Shinawatra government=making money for vested interests, not helping the people.

I am no economist, but expect a sudden inflation hike. Everything is related to fuel costs so expect alot of things to go up in price.

Well the 300 baht a day is supposed to be a one shot deal why not price increases.

I must have missed some thing wasn't the government just patting it self on the back from stopping a increase in Diesel fuel?

I might be wrong I just skimmed over that article

Locally diesel-prices are already above 30B, back to where they were, before the election and the tax-cut.

Interesting also that Mr Manoon thinks a $50/barrel increase would put the price up to only $120. Perhaps he should re-check that calculation again ?

But I'd agree that retail-prices should reflect the market-costs, now that price-smoothing has been officially abandoned, by PM-Yingluck & PTP.

To be honest, this thread gives absolutely no information of any relevance, what so ever!

It gives no benchmark costs, or estimated increase.

If petrol is going to rise in price, all I want to know is if current Gao Ha (Gasohol 95) is at approx 35Baht a litre, then what are the projected prices per litre as a result of this projected increase. Simple info required, that does affect me.

The info is not contained..... so I just wasted 2 mins of my life reading and replying to an empty fuel tank!

MEL.

Diesel in Ranong has gone up about 2 Baht in the past few days

Since this prediction from this expert seems to have missed the mark on crude price what is going on with pump prices in Thailand?

Sweet is now at 80 dollar/bbl from a peak of 109/bbl in Feb and pump price of diesel has dropped only by 3 baht/liter during this time frame. A little competation may be in order or at least a review by the cgroups appointed to monitor prices and profits.

Interesting also that Mr Manoon thinks a $50/barrel increase would put the price up to only $120. Perhaps he should re-check that calculation again ?

Ehhh, whatever, close enough ($79 today). We've been at $120 oil before. We survived.