Rising Oil Prices Affect Thai Economy

[Jai Dee]

Oil price may be raised by 40 satang tomorrow

A 40 satang per liter in oil price may be increased tomorrow.

Vice Managing Director of PTT, Chaiwat Churit (ชัยวัฒน์ ชูฤทธิ์) said that PTT will decide to increase fuel prices tomorrow. He said that Singapore’s oil entrepreneurs having taken the Easter break but PTT cannot subsidize the rising global oil price.

The latest news reported that the average market value of Benzene is below the actual values by 50 satang per liter, while the average market price of Diesel is below by 30 satang per liter.

Mr. Chaiwat affirmed that PTT will not raise its fuel prices more than 40 satang per liter. He said that Benzene 95 will rise at 28.34 baht per liter, while diesel will sell at 26.69 baht per liter.

Source: Thai National News Bureau Public Relations Department - 17 April 2006

[cclub75]

Oil price may be raised by 40 satang tomorrow

Vice Managing Director of PTT, Chaiwat Churit (ชัยวัฒน์ ชูฤทธิ์) said that PTT will decide to increase fuel prices tomorrow. He said that Singapore’s oil entrepreneurs having taken the Easter break but PTT cannot subsidize the rising global oil price.

I like the "will decide". They already have decided.

But as usual, it's wait and see policy... Increase gasoline prices during Songkran would be a bad political move, cha mai ?

In Thailand, subsidies are to economy what buying votes are to politics...

But check bill time will come.

[sonthaya]

Oil price may be raised by 40 satang tomorrow

Vice Managing Director of PTT, Chaiwat Churit (ชัยวัฒน์ ชูฤทธิ์) said that PTT will decide to increase fuel prices tomorrow. He said that Singapore’s oil entrepreneurs having taken the Easter break but PTT cannot subsidize the rising global oil price.

I like the "will decide". They already have decided.

But as usual, it's wait and see policy... Increase gasoline prices during Songkran would be a bad political move, cha mai ?

In Thailand, subsidies are to economy what buying votes are to politics...

But check bill time will come.

Let's be fair, it is not a easy game to play when you are dealing with the crazy mullahs in Iran, and the Americans on the other side, 95 octane gas here in Denmark hit today 68 bath a liter.

All we can do is hope for the best, many is suffering from the cricis like the airlines.

[nokia]

DIESEL

PTT wants to use reserves to ease shortage

Boosting imports to meet demand can only raise risk of widening trade deficit

PTT Plc is seeking to draw down the country's domestic diesel reserves to ease shortages that have sparked an uproar among truck and bus operators, the fishing industry as well as motorists who cannot refill their fuel tanks.

According to the Energy Business Department, Thailand's largest oil company has sought an approval to cut its reserves, which are required to be 5 per cent of total sales.

Two weeks ago, the Energy Ministry mentioned the possibility of a reduction in the legal diesel reserve requirement to ease the supply shortage.

"PTT is the only company that asked for the approval on the expectation that diesel demand in April at its petrol stations nation-wide will increase from 537 million litres to 545 million. It aims to reduce the reserves by 2.1 per cent," said Panich Pongpirodom, the department's director-general.

If approved, the new reserves will stay at that level for one month. The department expects to consider PTT's request in one or two days.

Panich still insisted yesterday that Thailand was not short of diesel supplies, despite reports during the Songkran festival that some consumers were turned away from petrol stations. Panich did admit that some stations had refused to fill up spare cans, but not vehicles' tanks.

If its reserves are not adjusted downwards, PTT will need to import more diesel immediately at a time when global oil prices have resumed their upward cycle, amid fears that imports would further widen the country's trade deficit.

Yesterday, crude oil futures in Singapore hit US$70 (Bt2,653) a barrel for the first time in seven-and-a-half months, lifted by concerns over declining gasoline stocks in the US, supply disruptions in Nigeria and tension over Iran's nuclear programme. The last time crude futures surpassed $70 a barrel was on August 30, when they traded at a record $70.85 a barrel after Hurricane Katrina struck the US Gulf coast.

Thai oil companies will consider today if they need to jack up retail prices - a move that was delayed before the Songkran festival.

Chaiwat Choorit, senior executive vice president of PTT, said that at present the company was recording a 50-satang negative marketing fee for every litre of petrol sold at the stations and a 30-satang negative fee for diesel. He added that PTT had halted wholesale trade of all fuels to make sure that all stations of PTT are adequately supplied.

"But we would not raise retail prices by as much as 80 satang per litre, as reported, to minimise the impact on consumers," he said, adding that the retail prices are likely to be raised by 40 satang per litre.

After the increase, octane-95 petrol prices will climb to Bt28.34, octane-91 to Bt27.54 and diesel to Bt26.69.

Other oil companies are expected to follow PTT's move.

Anusorn Sangnimnual, president of Bangchak Petroleum, said he preferred a 15-satang increase in retail fuel prices rather than the 40-satang rise. "We can opt for a lower increase at a time, but the price could be raised more frequently," he said. "The lower increase will not shock consumers and it will better reflect global prices."

To reduce oil imports, the Energy Ministry is implementing measures to cut imports by 5 per cent from the 2005 level, when an average of 828,000 barrels were imported daily.

Deputy Energy permanent secretary Pornchai Rujiprapha said there were discussions with crude oil producer and refiner Thai Oil, to refine more locally sourced crude oil.

"We concluded that an additional 61,000 barrels of onshore and offshore crude oil could be refined, to bring the total volume to 130,000 barrels. This should reduce oil imports by billions of baht," Pornchai said, adding that last year the country's oil import bill reached Bt650 billion.

Additional crude oil will come from the Thantawan and Benjamas fields, which are operated by Chevron. To refine the oil which is normally exported, Thai Oil needs to invest about $100 mil?lion-$200 million in new refining technology.

Coupled with lower consumption due to higher oil prices, crude oil imports in the first quarter dropped to 825,000 barrels per day on average, down by 3,000 from the 2005 level.

Pornchai of the Energy Ministry is confident that diesel imports will drop after April, when demand increased due to heavy travel schedules for the Songkran festival as well as the transportation of harvested agricultural products.

"Oil prices are much more expensive than our forecasts," he said. "Against our forecast of $50 per barrel, Dubai crude oil price is now $63 and many institutions expect it to rise to $70-$80. Still, we don't have a policy to stabilise diesel but will focus on the campaign to reduce consumption."

High oil prices have prompted truck and bus operators - who depend entirely on diesel - to consider raising service fees to cover the higher costs.

The association of northeastern truck operators called for a meeting yesterday to consider an increase of 10-15 per cent in service fees, which were fixed when diesel was at Bt20 per litre.

Surachan Kanakapinta, registrar of the association, said that if the association's proposal failed to receive official endorsement, truck operators could launch retaliatory measures including a mass gathering of trucks.

Suwit Tanvichit, chairman of the association of bus operators, also considered a meeting with members, who own about 7,000 of the more than 10,000 buses that offer tour and shuttle services.

"We barely cover our operating cost," he said. "Some operators are tied up in contracts struck for an annual period, which bound them to operate services at the old price. Some offer shuttle services for factories, but that might stop soon as they cannot cope with the escalating costs."

Sawai Jesyakom, vice chairman of the Songkhla fishery association, said that some fishing boats in the province bought illegal diesel from ships in international waters at a price if Bt21.30 per litre.

"The government's subsidy programme helps only small boats, not large boats which operate far from shore," he said. "Right now, over 600 fishing boats have halted operations and, without state assistance, more will follow. This will result in a chain reaction upon related industries like seafood processing plants and their workers."

Energy Reporters

The Nation

[cclub75]

Let's be fair, it is not a easy game to play when you are dealing with the crazy mullahs in Iran, and the Americans on the other side, 95 octane gas here in Denmark hit today 68 bath a liter.

All we can do is hope for the best, many is suffering from the cricis like the airlines.

I agree. But a responsible policy is not about good sentiments or fair game, but efficiency and awareness.

Thailand faces a major crisis with oil. So better to prepare it, rather than to use the old tactic of deny reality.

And let's face it, Iran-USA is just a part of the problem. This issue has nothing to do with China and India consumption for instance. Same with last august : it was the hurricanes problem that boosted the crude oil price to 70 USD.

The truth is : cheap oil age is ending. If old Europe for instance can face it (in France 80 % of electricity come from nuclear plants), Thailand simply can't.

In Denmark you can bare 68 THB a liter, and even much more. But in Thailand ? Can you imagine the cascade of effects with such a price ? Think about diesel for fish industry, transportation, electricity cost, agriculture... a large part of the "thai export machine" would collapse. Not suffering, just collapse.

And right now, the country economy held only with its exports (domestic demand is slowing).

And i dont speak about the financial effects : trade deficit, weakening of the currency, inflation, high interest rate etc.

This is not "sci fi" scenario : this is what will happen tomorrow.

So to hear those bloody "minister" just say "sabai i promise you that the gasoline will never go up 30 THB per liter"... i mean it's just suicidal.

[Jai Dee]

Retail oil prices up another Bt0.40 a liter - Wed

Oil retailers, except for PTT Plc will raise their retail prices of benzene and diesel fuel by Bt0.40 a liter effective Wednesday.

The increase will push the local oil prices to new record highs.

Following the hike, the retail prices of premium and regular gasoline will be Bt28.34 a liter and Bt27.54 a liter, respectively, according to the Energy Policy and Planning Office Tuesday.

The retail price of high-speed diesel will rise to Bt26.69 a liter.

The increase is also in line with new record highs for world's oil prices. Nymex crude futures set a fresh all-time record high early Tuesday as speculators remaining jittery over Iran's nuclear standoff with the West and the prospect of supply disruptions.

The benchmark May crude contract on the New York Mercantile Exchange was trading 46 cents higher at US$70.86 a barrel.

Source: The Nation - Breaking News - April 18, 2006 : Last updated 06:02 pm (Thai local time)

[Jai Dee]

Industrial entrepreneurs are asking for an adjustment of prices of their goods to cope with rising oil prices

Industrial operators are preparing to readjust prices of their products in the wake of rising oil prices.

Deputy Chairman of the Federation of Thai Industries Santi Wilatsakdanond (สันติ วิลาสศักดานนท์) said industrial entrepreneurs are forced by the global oil price situation to consider raising prices of their products by two to three baht per piece. He particularly mentioned toilet tissues as one of the products needing price hike due to higher transportation cost. Shipping cost also tends to rise because of the oil price.

Mr. Santi believed, however, that the oil price situation will not much affect the export sector. Nor will it decrease the country’s competitiveness.

Talking about baht strengthening, Mr. Santi urged the government to look into the problem, which he termed as worrying as the currency has already adjusted up by six to seven percent since the beginning of this year. He suggested that discussions be held between the government and the Bank of Thailand in order to formulate the baht's direction. He noted that the currency problem has already affected the Thai exports to a certain extent. The agricultural sector seems to be hit rather hard and prices of agricultural goods are estimated to rise accordingly.

Source: Thai National News Bureau Public Relations Department - 19 April 2006

[Jai Dee]

Deputy Chart Thai party urges govt to find ways to lessen financial burden on general public after the hike bus fares

Deputy Chart Thai party Nikorn Chamnong (นิกร จำนง) has urged the government sector to find ways to lessen the burden of the general public affected by the high prices of public bus fares.

In response to the oil price crisis, Mr. Nikon said that the crisis has caused public bus fares to increase, leading to a more burdens implicated onto the people. Following the cabinet’s resolution ordering PTT to sell fuel to public bus in cheaper prices, he views that this measure is just the short term solution for the matter.

He also expressed his concern over the matter that people will have less choice and alternative on public transport, if fares keep increasing.

Source: Thai National News Bureau Public Relations Department - 19 April 2006

[stumonster]

The agricultural sector seems to be hit rather hard and prices of agricultural goods are estimated to rise accordingly.

Source: Thai National News Bureau Public Relations Department - 19 April 2006

In response to the oil price crisis, Mr. Nikon said that the crisis has caused public bus fares to increase, leading to a more burdens implicated onto the people.

Source: Thai National News Bureau Public Relations Department - 19 April 2006

you have to wonder what sort of world these people reside in if they are suprised at what rising fuel prices do to the cost of everything.

last month a friend was looking to work in the nontaburi area but decided against it when it was worked out that transportation fees per day would total 54 baht.

[britmaveric]

Rising fuel prices will affect everything - higher prices for anything bought or sold I'm afraid.

[Jai Dee]

Minister of Transport calls meeting to tackle rising public transportation fare

The minister of transport has called a meeting with relevant agencies to discuss possible solutions to stabilizing rising bus fare.

Mr. Pongsak Ratapongpisarn (พงษ์ศักดิ์ รักตพงศ์ไพศาล), the minister of transport, has called for a meeting with all agencies working with public transportation, including the Bangkok Mass Transit Authority, The Transport Company, and the National Railway Authority, to enter joint discussions concerning the situation of rising public transportation fare due to rising oil prices.

At the same time Mr. Apiwut Tongkam (อภิวุฒิ ทองคำ), president of the public transport association, stated that the association will do everything in its power to stabilize public transport fares for the moment.

Mr. Apiwut cautioned, however, that if diesel prices rose more than 40 satang in the next few days, public transport fare may rise by 1 baht to compensate.

Source: Thai National News Bureau Public Relations Department - 20 April 2006

[Scott]

Rising oil prices overall have a devastating effect on the economy and people's lives. The time is ripe for getting as many alternative energy sources on board as possible as soon as we can.

[Jai Dee]

Natural gas gains keep PTT prices low

As world fuel prices soar ever higher, national oil company PTT continues to lose money at the pump.

Marketing margins for both benzene and diesel remain negative, meaning that PTT takes a hit of between 30 and 70 satang on each of the combined 20 million liters of benzene and diesel it sells every day. Tired of waiting for the government-run market leader to move, PTT’s competitors raised prices 40 satang per liter yesterday.

But despite the losses in retail sales, investors have continued to buy PTT. Its share price has jumped nearly 10 percent since the beginning of the month, coinciding with the recent spike in world fuel prices to more than US$72 per barrel on some exchanges. “News of negative domestic retail sales doesn’t have much effect on investors,” a PTT executive said yesterday, speaking on condition of anonymity. “The government requires the company to maintain a certain price, but we must balance the political pressure with the economic ramifications.” Presumably, the company will raise retail prices if the oil price continues to scale new heights. Oil prices eclipsed $72 per barrel on several exchanges yesterday, and topped $71 in trading on the New York Mercantile Exchange.

Though PTT may be taking a hit on the retail end, the company is raking in the cash at its refineries and its Gas Group. High refinery margins and steady gas sales keep investors happy and allow PTT some leeway in keeping prices low.

“Anyone who has a refinery can do well right now,” said Chaipat Thanawatano, an energy analyst at Tisco Securities. “I think PTT can hold the price for quite some time because they average it out over the year and can delay the decrease if they need to [if global prices eventually fall]. Also, they can use their other businesses to compensate retail petrol sales.” Though the bulk of PTT’s revenues come from the Oil Group, the bulk of its profits come from the Gas Group. Its move earlier this month to split off the Gas Group into a subsidiary is mostly symbolic for now, but it will show the public just how much the business contributes to PTT’s overall profits. “Part of the reason PTT waited so long to spin off the Gas Group was so that people wouldn’t see how valuable it is,” said a foreign analyst, speaking on condition of anonymity. “It makes about an 18-percent margin basically on a risk-free basis. When that comes out in the open, some people might accuse the company of making excessive profits.” PTT may face a one-time corporate tax of about 10 billion baht for transferring the Gas Group into a separate business, although that is still under negotiation with the government. PTT plans to retain 100-percent ownership of the new company for the foreseeable future.

Despite the good margins, PTT still will not make as much money as it would if its prices complied with market forces, and PTT executives who receive bonuses based on company performance will take a personal hit for keeping prices low. In forcing PTT to take a loss, the government has effectively transferred its direct petrol-subsidy program of a year ago onto the shoulders of the state-run oil company.

Still, the policy does benefit PTT in that it ends up bankrupting any independent petrol retailers. In addition, major foreign oil traders may slowly stop retail sales, which would effectively make PTT the sole petrol-seller in the country in the long term.

But the pricing policies are also responsible for fuel shortages. Like the sugar shortage a few months ago, the petrol shortages are a result of the government keeping prices well below market levels, which forces private companies to either smuggle the commodities out of the country or stop sales altogether.

“The current [fuel] shortage is entirely caused by the pricing policy,” renowned energy expert Piyasvasti Amranand, Kasikorn Asset Management chairman, wrote in an e-mail earlier this week. “If retail prices are raised to appropriate levels, there should be no shortage.”

Source: ThaiDay - 20 April 2006

[h90]

Let's be fair, it is not a easy game to play when you are dealing with the crazy mullahs in Iran, and the Americans on the other side, 95 octane gas here in Denmark hit today 68 bath a liter.

All we can do is hope for the best, many is suffering from the cricis like the airlines.

I agree. But a responsible policy is not about good sentiments or fair game, but efficiency and awareness.

Thailand faces a major crisis with oil. So better to prepare it, rather than to use the old tactic of deny reality.

And let's face it, Iran-USA is just a part of the problem. This issue has nothing to do with China and India consumption for instance. Same with last august : it was the hurricanes problem that boosted the crude oil price to 70 USD.

The truth is : cheap oil age is ending. If old Europe for instance can face it (in France 80 % of electricity come from nuclear plants), Thailand simply can't.

In Denmark you can bare 68 THB a liter, and even much more. But in Thailand ? Can you imagine the cascade of effects with such a price ? Think about diesel for fish industry, transportation, electricity cost, agriculture... a large part of the "thai export machine" would collapse. Not suffering, just collapse.

And right now, the country economy held only with its exports (domestic demand is slowing).

And i dont speak about the financial effects : trade deficit, weakening of the currency, inflation, high interest rate etc.

This is not "sci fi" scenario : this is what will happen tomorrow.

So to hear those bloody "minister" just say "sabai i promise you that the gasoline will never go up 30 THB per liter"... i mean it's just suicidal.

Alone using very basic measures of energy saving in Thailand could save 5-10 %. solar power for hot water, smaller car engines, making some insulation and not set the aircon to max..

In my former job, they had the windows open, two hugh aircons on max power and sitting in winter clothes in the office because so cold....

I think energy is still to cheap. Human beeings only start to thinking when things really hurt.

[Heng]

Let it float. Folks can't be babied forever.

[Jai Dee]

Oil traders decide to further increase oil prices by 50 satang/liter

Following the government’s announcement to increase the gasoline prices in Thailand, Oil Traders Association in Satun Province has decided to raise the fuel prices further by 50 satang per liter so they would be able to deal with their burdening trade deficits.

Mr. Manit Wattanasen (มานิต วัฒนเสน), the Satun Provincial Governor, attended the meeting with the oil traders in the province today, to discuss ways to alleviate the trade deficits of many gas stations. He said all oil traders in the country are facing trade deficits and insufficient fuel supplies.

Thus, the association has come up with a resolution to increase the oil prices further by 50 satang per liter. They will submit the document to the government to signify their intentions. The price adjustments have now taken effect.

Source: Thai National News Bureau Public Relations Department - 20 April 2006

[Jai Dee]

Minister of Transport stresses that public transportation fare will not be increased

The Transport Minister, Mr. Pongsak Raktapongphaisal (พงษ์ศักดิ์ รักตพงศ์ไพศาล), has affirmed that he will not authorize an increase of transportation fare of any kind, unless diesel prices increase past 27.69 baht.

Mr. Pongsak revealed the results of meetings with agencies under his ministry, stating that all kinds of public transportation fare will be stabilized, and not adjusted until diesel prices rise above 27.69 baht. He stated that another meeting will be held when diesel prices have move past that barrier. The Ministry of Transport is encouraging the public to shift to using NGV gas as an alternative source of energy.

The Transport Minister added that he will enter discussions with the Ministry of Energy next week to find a solution to the problem.

Source: Thai National News Bureau Public Relations Department - 21 April 2006

[Jai Dee]

Oil traders to give their utmost cooperation with the govt during the oil price crisis

Oil traders have asserted that they will give their full cooperation with the government in assisting companies affected by the high oil price.

Speaking on the oil price crisis, PTT President Prasert Bunsumpun (ประเสริฐ บุญสัมพันธ์) said that PTT will find ways to assist transportation, agriculture, and SME sectors as these organizations have been directly affected by the crisis.

The Chairman of Shell (Thailand) Public Company Limited, Mr. Tiraphot Vajrabhaya (ธีรพจน์ วัชราภัย), said that Shell will help lessen financial burdens of transportation sectors, while the Thai Oil refinery is satisfied with the government’s policies on not interfering with the situation of oil prices.

The Managing Director and Secretary to the Board of Thai Oil refiniery, Dr. Viroj Mavichak (วิโรจน์ มาวิจักขณ์ ), confirmed that the company will also join hand in alleviating oil price crisis.

Source: Thai National News Bureau Public Relations Department - 21 April 2006

[Jai Dee]

PTT will not raise its fuel prices today

PTT has announced that it will not raise its fuel prices today.

PTT President Prasert Bunsumpun (ประเสริฐ บุญสัมพันธ์) revealed that PTT will not decide to increase its fuel prices today as it wants to monitor the fuel prices in the global market this evening first.

He informed that PTT will not bear the burdens that it could not control. He added that since April 9th, the company has lost more than 150 million baht because it decided not to raise its fuel prices on that particular day.

Meanwhile, the Chairman of Shell (Thailand) Public Company Limited, Mr. Tiraphot Vajrabhaya (ธีรพจน์ วัชราภัย), said that he cannot indicate the current direction of fuel prices because the oil prices change on a daily basis. However, he informed that oil traders are selling fuel at the prices below the actual values by 2 baht per liter.

Source: Thai National News Bureau Public Relations Department - 21 April 2006

[cclub75]

PTT President Prasert Bunsumpun (ประเสริฐ บุญสัมพันธ์) revealed that PTT will not decide to increase its fuel prices today as it wants to monitor the fuel prices in the global market this evening first.

He informed that PTT will not bear the burdens that it could not control. He added that since April 9th, the company has lost more than 150 million baht because it decided not to raise its fuel prices on that particular day.

Amazing. A CEO who is proud when his company is loosing money...

Anyway, Mister Bunsumpun is going to sleep bad tonight : right now oil is at 75 USD in NY !

So PTT will increase its price... tomorrow ?

[Jai Dee]

FUEL COST SURGE

Higher petrol prices hurting transport firms, traders

Surging petrol prices have bitten deep into the profits of public transport operators and small oil retailers, forcing the temporary closure of their businesses.

In Nakhon Sawan, owners of small petrol stations along Nakhon Sawan-Phitsanulok road have temporarily stopped operating. They said the diesel sold to them by petrol traders is almost one baht per litre more expensive than that sold to major petrol stations.

For example, PTT stations get diesel supplied at 26.53 baht per litre, compared to about 27 baht per litre charged to small stations.

As a result, small-scale service stations needed to close until the crisis eased.

In Surat Thani, local ferry service manager Srisak Srisawat said escalating petrol prices raised operating costs by 40-45% while fares were still unchanged.

Various public transport operators have asked the government to approve fare rises, but it is still reluctant.

Chamnien Thongdee, a small bus cooperative's chairman, said buses are feeling the pinch. Thirty per cent of the drivers in his cooperative had stopped their shuttle services and sought better-paid jobs as they could no longer make ends meet.

Sila Wandee, of the coastal aquaculture association, said around 1,000 local fish trawlers were moored on-shore due largely to rising oil prices, which had pushed up the prices of seafood on the market.

Pakdee Worasunthrarom, the director of a privately-run freight service, said higher petrol prices may force many freight delivery operators out of business.

The desired quantity of diesel could not be purchased because major petrol wholesalers could sell it in only limited amounts.

In Nakhon Ratchasima, motorists have modified their vehicle engines to be able to use natural gas.

In another development, Interior Minister Kongsak Wantana said his agency was introducing a bike lane project nationwide to try to lessen the public's reliance on petrol.

Source: Bangkok Post - 22 April 2006

[Jai Dee]

Acting PM confirmed that the govt will try it best for alleviating burdens of people

Acting Prime Minister Chitchai Wannasathit (ชิดชัย วรรณสถิตย์) confirmed that the government will do its best to help out the people who are affected from the present oil price crisis.

Pol. Gen. Chitchai said that the government cannot control and manage the oil price increases. Nevertheless, he said the government is seeking ways to assist the public.

In regard to the current oil price crisis, he requested people to help reduce their energy consumption.

Source: Thai National News Bureau Public Relations Department - 22 April 2006

[Jai Dee]

Internal Trade Department dispatched officials to inspect fuel stations to prevent wrongdoings during this period

Officials from the Internal Trade Department has dispatched officials to inspect fuel service stations in preventing operators from taking advantage of the public during this period of high oil prices.

Internal Trade Department Director-General Siriphol Yodmuangcharoen (ศิริพล ยอดเมืองเจริญ) has inspected a service station in Bangphlad (บางพลัด) District to check on the accuracy of the oil meters. He said afterwards that no illegal conduct was found. However, his department will be dispatching its officials to thoroughly inspect each service station in Bangkok to guard against operators declining sale of oil to consumers the day before prices are hiked. Such violation, if found, would lead to no more than seven years imprisonment or 140,000 baht of fines.

As for the provincial area, Internal Trade officials from each provincial commerce office will be joined by authorities in their conduct of inspections.

If violations are observed by the public, reports can be made to the hotline 1569.

Source: Thai National News Bureau Public Relations Department - 22 April 2006

[Jai Dee]

EGAT says rising oil prices means more costly electricity bills

The Electricity Generating Authority of Thailand admits that rising oil prices will affect the cost of electricity.

Mr. Pichai Jurapongsathorn (พิชัย จุลพงศธร), deputy governor of the EGAT management, revealed that the price of electricity was dependent on the cost of fuel. Mr. Pichai reassured the public that electricity prices will not be increased at the moment as the decision will be made only by joint consideration between the Electricity Regulatory Board and the government. Mr. Pichai stated that the next meeting on fuel prices will take place in June.

Mr. Pichai added on the incident in which a power plant in Ratchaburi malfunctioned and is now being powered by diesel fuel, which will surely add to the price of electricity in that area, stating that the problem will be resolved quickly.

Source: Thai National News Bureau Public Relations Department - 23 April 2006

[Jai Dee]

PTT is working to increase NGV popularity in the market

The PTT company is accelerating its plan to support the integration of natural gas systems into the mainstream market, and is constructing more NPG fuel stations to expand the service base.

Mr. Jitrapong Kwangsuksatit (จิตรพงษ์ กว้างสุขสถิตย์), deputy managing director of the PTT company, said that with oil prices at their highest in 2 years, the PTT company is hastening its campaign to shift consumer use to alternative forms of energy. Initial surveys revealed that more people are turning towards natural gas to power their vehicles, but obstacles still remain, amongst them the high installation costs of NGV systems and the lack of service stations. Mr. Jitrapong stated that PTT will solve these problems by lowering installation costs and building more service stations.

In addition PTT is aiming to produce more biodiesel to eventually replace diesel fuel in the near future.

Source: Thai National News Bureau Public Relations Department - 23 April 2006

[Scott]

It's having one hellavu effect on my economy too!

[warriors]

It's having one hellavu effect on my economy too!

You live on the moon??????

[cclub75]

They have entered in full panick mode...

Even if PTT is still proud to loose 1.50 THB per liter. Country of smile, isn't it ?

Now they start considering to cut... taxes on gasoline. Another bright idea to gain -a little- time.

Last week this solution was a no go.

http://www.nationmultimedia.com/2006/04/26...ss_30002539.php

But I don't blame Thailand... USA did the same : Bush today has ordered to stop filling the strategic reserves, till the autumn, in order to "leave a little more oil on the market".

Meanwhile, next week we are going to have the meeting at UN about Iran's nuclear program.

It's rather unlikely that oil's price could dip. Iran's president continue to play the "matador theme".

I continue to think that it's Mister Oil that will topple Mister Thaksin.

The only problem is : common people are going to suffer a lot.

And especially in Thailand.

Just a reminder with an example of a western country, to illustrate the problem ahead :

-in France, 1 liter = 1.40 euro (64 THB).

-Thailand 1 liter 28 THB.

-GDP per capita France = 27 700 USD (2003)

-GDP per capita Thailand = 7 000 USD (2003)

We could say that, grosso modo, thai will suffer twice the burden of a french (he pays oil 50 % of the french price, but he is 4 times less rich)

But of course this figure is in a way wrong : because incomes in thailand are much more concentrated than western countries...

[Jai Dee]

Energy Ministry asks for fuel usage data from transport sectors to use in providing assistance for high oil prices

The Energy Ministry is asking for collaboration from transport sectors in providing information regarding fuel usage, in order for it to use in addressing the problem of high oil prices.

Energy Ministry Permanent Secretary Cherdphong Siriwit (เชิดพงษ์ สิริวิชช์) said there have been requests for collaboration from the Bangkok Mass Transit Authority, the Transport Company Limited, "yellow plated" for-hire vehicles, and inter-provincial coaches in providing information on their usage of petrol. Information on each transport vehicle's fuel usage and travel distance would be used in making decisions to help with reducing the burden of high oil price. Today (April 26) a meeting on this matter will take place.

Initial assistance for the problem would involve giving 1 baht per liter of assistance money to oil sellers. In the meantime the agricultural and fisheries transport sector is already receiving assistance. A consideration at the senior level would be made on the providance of assistance money, to control and prevent "money leaks".

Mr. Cherdphong further stated that PTT Plc. would be the initiator in investments to convert all LPG (cooking gas) taxis into NGV-using vehicles. The plan is to convert 30,000 taxis into NGV vehicles this year. There also may be lowering of excise duty for auto businesses, pending further consideration.

Source: Thai National News Bureau Public Relations Department - 26 April 2006

[Jai Dee]

Mr. Viset believes fuel prices might decrease if no violence takes place

Energy Minister Viset Choopiban (วิเศษ จูภิบาล) believes that the prices of fuel are likely to drop if no violence is stirred between Iran and the United Nations on the 28th of April. However, he said the prices will still remain high.

The diesel price is currently at a deficit by 56 satang per liter while benzene 95 is lower by 27 satang per liter. The prices are affected by the gradual increase of the fuel prices in the world market.

Energy Minister Viset added that the Energy Ministry will administer the electricity consumption of Thailand so it will not be raised higher than 4 per cent. He said such implementation will reduce the usage of fuel in generating electricity.

Source: Thai National News Bureau Public Relations Department - 26 April 2006