Abhisit: Energy Policy 'Fuelling Price Rises'

[webfact]

Energy policy 'fuelling price rises'

The Nation

BANGKOK: -- Opposition Party leader Abhisit Vejjajiva yesterday called on the government to review its energy policies, which he said would cause oil-price speculation, leading to a rise in the price of consumer products.

If the price of diesel rises, the price of all goods would increase, Abhisit said.

"The government must review its energy policy and not listen to its supporters who nonsensically argue that no one uses diesel oil to make omelettes,'' he said.

The Democrat Party leader was speaking at a seminar entitled, "Brave through the crisis of price rise".

Abhisit said the energy minister's recently announced measures to handle the oil-price increase would push the burden onto the public, adding that the minister had distorted the facts.

Prices of LPG and NGV should not be linked to export prices, Abhisit said.

"I have never seen a country that produces gas and sells it domestically at the same price that it exports it for,'' he said.

He said the government must be attentive to solving the problem of inflation and rising prices.

"Inflation is horrible because money in our pocket just disappears. The inflation problem is complicated and the government must pay close attention. The government cannot control the price of goods, because the price is dictated by supply and demand,'' he said.

Abhisit said the government should admit that the public faces a rising cost of living, instead of accusing the Opposition of exaggerating the problem and of causing panic and hoarding.

"If the prime minister believes the claim by government supporters that we are not facing a problem of price increases, the prime minister must publicly say the government does not need to do anything to solve the problem. If that is the case, why did it hold a meeting about the rising cost of living?'' he said.

Abhisit said price rises were occurring at the same time that farmers suffer low prices for their produce. The rice-pledging scheme had not met its targets, he said.

The Opposition leader urged the government to review its policy to import palm oil to support PTT's production of bio-diesel.

"The energy minister's statement that Thais have been enjoying low-priced gas for a long time - that it is time they paid more for gas so they learn how to economise - is not right. Do not say that, because people do not burn gas just for fun,'' he said.

Praipol Kumsap, a lecturer at Thammasat University's Faculty of Economics, said the government's policies contributed to price rises. The cost of production depends very much on the oil price. "If the government does not want the oil price to increase to a level that impacts the public, it has to use the mechanism of the Oil Fund, otherwise the public will have to pay from their own pocket,'' he said.

The academic said that although PTT made profits from selling gas, it lost money from selling LPG and NGV because of transport costs. "It is inevitable the company raises its prices, but it should not raise them too high,'' he said.

Chaiwat Saengchai, an adviser to the Fresh Market Association, admitted that the price of protein-rich foods such as eggs and pork had increased, but said consumers could opt to eat other foods that provide protein.

He criticised the government's price-pledging programme, which saw only low-quality rice being pledged. He said the government stood to lose huge sums from the programme. "This populist policy uses too much money. Splurging money will only ruin our future; eventually we will face a rainy day,'' he said.

Chaiwat also opposed the policy to increase wages by 40 per cent, saying small and medium-sized manufacturers would be hit hard.

Pheu Thai Party spokesman Prompong Nopparit said he would propose to the party that the Prime Minister set up a 'war room' to solve the problem of rising prices, with officials from the Commerce and Transport ministries invited to discuss these concerns.

-- The Nation 2012-03-19

[exeter]

Abhisit is not far wrong, along with impending 300bt a day wage, but I dont suppose anyone is listening to him. I suspect people up country are wondering why life is so tough for them, they no doubt thought a PT government would mean a better life for them. World oil prices means little to them, the price of food does.

[RogueExpat]

I don't care what "official" inflation figures are - you can't believe them anyway, "real" inflation - the price on the street, has been huge in the past couple of months. IMO basic living is costing between 25 - 40% more than a year ago. Many of my staff (who incedently are being paid far more than the minimum wage) are for the first time complaining thay cannot survive on 350B per day.

In my opinion, the some of the main factors are businesses adjusting for expected long term higher energy prices & cost hikes, such as nearly doubling of labour & associated costs.

Businesses, especially at the national wholesale level are hoarding at the moment, go into 7/11 and see how many product lines are temporarily un-available.....

and probbaly the largest physcological factor;

There is a deep rooted sentiment amongst all levels of Thai's with respect to the huge amounts of "shady" money currently, and potentially floating around at the moment. The average man on the street sees the PT politicians raking in more personal money than ever before, and wants his little bit.

I guess the best way to draw an example of the 30 - 40% coming off the top of the national budget and entering circulation, would be akin to the BOT arbitrarily releasing more currency into circulation. Everyone knows their is more "money" to be had, and hence, wild inflation.

[anterian]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

[jonclark]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Fair comment, but the context of the OP is one based on the average Thai person, for whom the cost of living is increasing dramatically.

[givenall]

Abhisit is not far wrong, along with impending 300bt a day wage, but I dont suppose anyone is listening to him. I suspect people up country are wondering why life is so tough for them, they no doubt thought a PT government would mean a better life for them. World oil prices means little to them, the price of food does.

Make more and pay even more than you make

[anterian]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Fair comment, but the context of the OP is one based on the average Thai person, for whom the cost of living is increasing dramatically.

Thais have an insular view of life, they do not understand that their problems are not unique but reflected globally. At least the fish in the canals are still the same price, free.

[Colin Yai]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Why not compare how long a Thai has to work to buy a kilo of pork or 5 litre's of diesel in comparison to how long a European has to work, No contest!!! Edited March 19, 2012 by Colin Yai

[anterian]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Why not compare how long a Thai has to work to buy a kilo of pork or 5 litre's of diesel in comparison to how long a European has to work, No contest!!!

The Thais you are talking about pay no income tax, no Council tax, no compulsory National insurance, an Englishman loses half of his income to the government. Neither an Englishman nor a Thai would by a kilo of pork, the Englishman would by 3 pork chops for 2 pounds 50 and the Thai would by Tom yam moo for 25 Baht.

But this is missing the point, the true comparison is what percentage of an English person's take home pay goes on food compared to a Thai..

[NCFC]

When Abhisit was PM,the supermarkets were running out of basic food items. We had rationing for oil, bottled water, rice, coconut milk, sugar and eggs in our local Home Freshmart. One item per family,as I recall. And this was without the excuse of nationwide floods. So I don't think we need any lessons in economic management from the leader of the oppostion.

[animatic]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Actually...

I've had 3 separate people come bacj from UK Ireland, and without prompting saying that

'Thailand has bizarely started to cost more to live in then Olde Blighty or Ire.'

They were shocked as hell after only being gone 2-5 months.

So yeah, inflation is noticeable to them without question.

To the average Somchai making 7,000 a month, it is monstrously high.

Good job PTP.

Edited March 19, 2012 by animatic

[stoneyboy]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Actually...

I've had 3 separate people come bacj from UK Ireland, and without prompting saying that

'Thailand has bizarely started to cost more to live in then Olde Blighty or Ire.'

They were shocked as hell after only being gone 2-5 months.

So yeah, inflation is noticeable to them without question.

To the average Somchai making 7,000 a month, it is monstrously high.

Good job PTP.

Could you elaborate on this further,as I have just returned to the UK after 3 months and fail to see how it's more expensive to live in Thailand than England,in no way do I disagree that the cost of living is on the up in LOS,but it's a long way from being more expensive than here,my rent in Thailand is 4,000 baht a month,my rent in the UK is 8,000 baht a week,a can of coke costs 13 baht,here it costs 35 baht I could go on and on.

Now if your friends like to shop at Tops and villa and indulge in all things western whilst living in Thailand then yes I could imagine things get very expensive but the real cost of living,home,water,electricity and the like are so much cheaper it makes me nearly weep.

[Mosha]

When Abhisit was PM,the supermarkets were running out of basic food items. We had rationing for oil, bottled water, rice, coconut milk, sugar and eggs in our local Home Freshmart. One item per family,as I recall. And this was without the excuse of nationwide floods. So I don't think we need any lessons in economic management from the leader of the oppostion.

Under this shower, diesel has risen between 3 and 5 Baht/litre. All the stupid sods had to do was leave the fuel levy in place. However no, they have to unravel all Democrat policies. eg Free medicine/basic health.

[anterian]

I think some posters should visit their home countries before they moan about the rising costs of living. The increases in Thailand are nothing compared to Europe. I can remember when petrol was 5 shillings a gallon. (25p for 4.5 litres in modern terms).

Actually...

I've had 3 separate people come bacj from UK Ireland, and without prompting saying that

'Thailand has bizarely started to cost more to live in then Olde Blighty or Ire.'

They were shocked as hell after only being gone 2-5 months.

So yeah, inflation is noticeable to them without question.

To the average Somchai making 7,000 a month, it is monstrously high.

Good job PTP.

Could you elaborate on this further,as I have just returned to the UK after 3 months and fail to see how it's more expensive to live in Thailand than England,in no way do I disagree that the cost of living is on the up in LOS,but it's a long way from being more expensive than here,my rent in Thailand is 4,000 baht a month,my rent in the UK is 8,000 baht a week,a can of coke costs 13 baht,here it costs 35 baht I could go on and on.

Now if your friends like to shop at Tops and villa and indulge in all things western whilst living in Thailand then yes I could imagine things get very expensive but the real cost of living,home,water,electricity and the like are so much cheaper it makes me nearly weep.

I think animatic is exaggerating in order to make a point. Perhaps his returning friends from the UK and Ireland lead a monastic life in their homes.

My wife has just returned to England last week, she was happy with how cheap food is here in Thailand compared to back home. My son regularly commutes he complains about how expensive England has become. But there is a simple solution to resolve this exaggeration,

Here is the website for Tesco in England http://www.tesco.com/

Here is the same for ASDA ( the store I mainly use) http://groceries.asda.com/asda-estore/index.jsp?referrer=cookiesDetecting

And here it is for Sainburys http://www.sainsburys.co.uk/sol/index.jsp

Now go to BigC and compare directly, no hearsay, no word of mouth, just simple comparisons.

[Buchholz]

When Abhisit was PM,the supermarkets were running out of basic food items. We had rationing for oil, bottled water, rice, coconut milk, sugar and eggs in our local Home Freshmart. One item per family,as I recall.

When was this?

We never encountered shortages / rationing as you described during any recent time... until the floods last year.

.

[whybother]

When Abhisit was PM,the supermarkets were running out of basic food items. We had rationing for oil, bottled water, rice, coconut milk, sugar and eggs in our local Home Freshmart. One item per family,as I recall. And this was without the excuse of nationwide floods. So I don't think we need any lessons in economic management from the leader of the oppostion.

When and where was that? I remember there being a shortage of palm oil but never anything else.

[WackySomchai]

When Abhisit was PM,the supermarkets were running out of basic food items. We had rationing for oil, bottled water, rice, coconut milk, sugar and eggs in our local Home Freshmart. One item per family,as I recall. And this was without the excuse of nationwide floods. So I don't think we need any lessons in economic management from the leader of the oppostion.

Do you live in a village with communist redshirt leaders?