Fuel Prices Start To Hit Hard

[george]

Fuel prices start to hit hard

BANGKOK: -- Soaring oil prices and dropping profits by service stations and fuel sellers dealers have forced more than 100 petrol stations in Thailand's western province of Kanchanaburi - home of the River Kwai - to shut down. In the South, trawler owners in Songkhla say they are looking for prospective buyers of their fishing boats.

Worldwide financial pressures emanating from the rising price of crude oil not only affect the exchanges and corporate boardrooms of high stakes players, but affect truckers, fishermen and ordinary folk just trying to go to market in rural Thailand.

Closed petrol stations, grounded upcountry trucking land transport services, and fishing fleets that don't put out to sea are part of the landscape in Thailand today.

It's all because the global crude oil price has surged to more than $70 a barrel.

More than 100 petrol stations in Kanchanaburi province west of Bangkok, on the Burma border, have closed down, according to Pichai Poonsakpaisal, secretary of Kanchanaburi's Oil Traders Club.

The province has many foreign tourists who come to visit the historic Bridge on the River Kwai and World War II cemeteries.

Mr Pichai said he used to order about 15,000 litres of diesel daily for his gas station but now he orders only 6,000 litres - below his customers' demand - because he is unable to procure a sufficient volume of diesel for his customers.

The local oil dealer urged the government to speak the truth to the public on how much oil is left in the inventory as current diesel supplies could not meet demand.

In the southern province of Songkhla which borders Malaysia, many fishing vessels may be seen at anchor, idle, as fishermen decide not to venture out to sea for fishing, due to steep price of diesel. Some owners have decided to sell their fishing boats at heavily discounted prices although few if any buyers have appeared.

Songkhla Fisheries Association vice president Sawai Jaeyakom lamented that prices of marine products remained unchanged although diesel price had soared to around 26-27 baht a litre now, nearly doubling from 14 baht in a short period.

Mr Sawai urged the caretaker government to help fishermen by raising the prices of marine products and to also install more government-subsidised diesel stations near the shore.

--Bangkok Post 2006-04-29

[stumonster]

urged the government to speak the truth to the public

I am sorry mate , but it is the same the world over - even when their balls are in a bench vise they will still be lying in cliche speak.

[PeaceBlondie]

Mr. Pichai is quoted as saying, "...The local oil dealer urged the government to speak the truth to the public on how much oil is left in the inventory as current diesel supplies could not meet demand."

There is hope for Thailand. Here is a Thai person, a Thai citizen no doubt, URGING the govt. to speak the truth to the public.

Or is that what all those PAD protests were about?

And hey, the airport is going to open in 2004, and the govt. is going to give 1,298,986 fully assembled compters to the schools, and a bowl of som tam in every tuk tuk.....You just have to love Lie-Land.

[george]

Fishing fleet 'grounded' in South; 100 petrol station close

KANCHANABURI: -- Soaring oil prices and claims of a declining marketing margin obtained by retail oil dealers have forced more than 100 petrol stations in Thailand's western 'River Kwai'

province of Kanchanaburi to close down their businesses, while fishing trawler owners in the southern Songkhla province are looking for prospective buyers of their vessels.

Worldwide financial pressures emanating from the rising price of crude oil not only affect the exchanges and corporate boardrooms of high stakes players, but affect ordinary truckers, fishermen and ordinary folk just trying to go to market in rural Thailand.

Closed petrol stations, grounded upcountry trucking land transport services, and fishing fleets that don't put out to sea are part of the landscape in Thailand.

It's all because the global crude oil price has surged to slightly over US$70 a barrel.

More than 100 petrol stations in Kanchanaburi province west of Bangkok on the border with Myanmar have closed down, according to Pichai Poonsakpaisal, secretary of Kanchanaburi's Oil Traders Club.

The province has many foreign tourists who come to visit the historic 'Bridge on the River Kwai' and World War II cemeteries.

Mr. Pichai said he used to order about 15,000 litres of diesel daily for his gas station but now he orders only 6,000 litres--which is below his customers' demand--because he is unable to procure a sufficient volume of diesel for his customers.

The local oil dealer urged the government to speak the truth to the public on how much oil is left in the inventory as current diesel supplies could not meet demand.

In the southern province of Songkhla which borders Malaysia, many fishing vessels may be seen at anchor, idle, as fishermen decide not to venture out to sea for fishing, due to steep price of diesel. Some owners have decided to sell their fishing boats at heavy discounted prices but have no buyers.

Songkhla Fisheries Association vice president Sawai Jaeyakom lamented that prices of marine products remained unchanged although diesel price had soared to around Bt26-27 a litre now--nearly double when compared to the price of Bt14 previously.

Mr. Sawai urged the caretaker government to help fishermen by raising the prices of marine products and to also install more government-subsidised diesel stations near the shore.

--Bangkok Post 2006-04-29

[elkangorito]

The only good thing I see coming from this is that the Thai fish population will have a short time to replenish it's numbers after being grossly over-fished.

At the moment in Australia, Petroleum is about $1.40 per litre (50 baht) & Distillate is a little dearer.

[Heng]

I don't know about all of the gasoline distributors, but my friends at PTT and Conoco (Jet/Jiffy around these parts) assure me that the only folks hurting are folks who can't afford the higher prices. We only discussed benzene, didn't talk much about other petroleum products upstream/downstream.

Their margins are as healthy as ever.

[elkangorito]

I don't know about all of the gasoline distributors, but my friends at PTT and Conoco (Jet/Jiffy around these parts) assure me that the only folks hurting are folks who can't afford the higher prices. We only discussed benzene, didn't talk much about other petroleum products upstream/downstream.

Their margins are as healthy as ever.

Their 'margins' are not healthy...they are FATTER than ever!!!

In Australia, fuel prices generally change daily at each & every service station...sometimes the price of fuel changes twice a day. The ACCC (Australian Competition and Consumer Commission) tried to look into this pricing racket but were gagged (strangely) after a short time of this investigation. It sadly led to the resignation of the ACCC boss, Allen Fells, who was dedicated to his job...a good man.

ACCC link http://www.accc.gov.au/content/index.phtml/itemId/142

The oil companies are richer than ever & they are hiding things. Maybe they realise that their time will soon be up as a result of other energy solutions being implemented & maybe they are "cashing in" now?

This may be off topic but another problem arises now. Nuclear energy is now the main focus of many countries. Australia has the largest reserves of the highest quality uranium. The Australian government has stupidly released these reserves to the global market. Oddly, nuclear generated electricity is not permited in Australia. So called 'experts' insist that this energy is safe. While it may be safe & clean to create electricity, the waste produced by these plants will last for thousands of years (about 100 000 years). This waste will pollute the world for countless future generations & our grand kids will be left to deal with this mess.

And lets not forget about the unscrupulous countries who will lie to get this uranium & then use it for weapons.

It appears that politicians are creating a problem to solve a problem. Much the same reason why such redundant energy sources (fossil fuels) have flourished for so long...the pollies are making money from it. I apologise if this is seemingly off topic but it is still related to the problem at hand...a shortage of available energy.

Edited April 30, 2006 by elkangorito

[Johpa]

I don't know about all of the gasoline distributors, but my friends at PTT and Conoco (Jet/Jiffy around these parts) assure me that the only folks hurting are folks who can't afford the higher prices. We only discussed benzene, didn't talk much about other petroleum products upstream/downstream.

Their margins are as healthy as ever.

Alas, there are far more people in the "hurting" category worldwide than in the "non-hurting" category. Do your friends have any thoughts about the extent of the pain or do they just write it off as, "they lose and we win and isn't greed good?"

Look, the oil companies do not need to raise margins to make greater profits, all they need to do is maintain margins. Unlike other industries, the oil companies are no less a cartel than is OPEC and they are far more united than OPEC and face little competition. When you are in a truley competitive market margins tend to drift downwards a bit as retail and wholesale prices go up. There is usually someone less greedy than others willing to take a lower margin. But clearly that does not happen in the oil industry, hence record profits.

But what does one expect when your cartel controls, actually inhabits, the executive branch of the United State's government? The war in Iraq was always about oil. It is a failed venture, doomed from the start so say some people, including myself, and now the world is paying the price. Not that oil prices would not have risen without the war, but the rise in oil prices would not be so meteoric.

[Scott]

Filling up the gas tank is like going to the dentist--they always say it won't hurt much, but it does.

[Rinrada]

UK fuel prices reach new record bit of info...

Petrol prices have risen sharply over the past month

The average prices of both unleaded petrol and diesel have reached its highest level yet, according to the AA Motoring Trust.

The average petrol price reached 96.13p per litre on Thursday, while diesel stood at 98.81p per litre, the AA said.

BP chief executive Lord Browne said soaring crude oil prices "may well create petrol prices above a pound a litre

The price of US light, sweet crude oil - a benchmark for global oil markets - hit a record high of more than $75 a barrel last week, and Brent crude, the European benchmark, touched $74 before falling back slightly

UK Petrol Prices for.........Thursday 27th Apr 2006.(Bank hol weekend)

Avg. Min. Max.

Unleaded: 96.3p 90.9p 104.9p

Diesel: 98.9p 93.9p 109.9p

LRP: 99.4p 94.9p 103.9p

Super: 101.6p 93.9p 109.9p

LPG: 45.0p 38.9p 49.9p

Almost 80 baht a ltr......Time to move house.....

[ando]

Its not the end of the world. The markets will adjust, the traffic will keep flowing and the fishing boats will put to sea again. Its just that the sudden spike in fuel prices has thrown the whole pricing equation on everything out of kilter. The rising cost of imported fuel affects most countries but of course the poorer nations have less of an ability to absorb the increases. The one thing we can be sure of is that the price of just about everything will have to go up to compensate and we will all be able to buy a little bit less for the same money. People will buy a little bit less than they did before. That doesn't mean a lot for the rich countries, but it can mean a real lot for people in places like Thailand. Countries without their own reserves cant buffer themselves and have to wear the full brunt of sudden rises in world prices.

But the Thais are a resilient bunch and they will work around it as they have always worked around adversity. Things will settle down, even if everything costs a bit more and the standard of living is not as high as it could be. China and to a lesser extent, India are surging ahead and sucking up the worlds oil supplies. So competition for oil is increasing and prices go up and look like continuing to keep going up. The volatile situation in the Middle East is not helping either, but basically thats just a speculation thing while the real driver of oil prices is supply and demand. The big surge in prices might level off sometime down the road but the one certain thing is that oil prices will keep going up while China and India continue to grow and compete for this resource. All countries including Thailand will adapt and learn to allow for oil price increases in their economic planning. Basically, we are all taking a little cut in pay to give the people in China and India a rise in living standards. Maybe its not quite that simple, but in the end thats how it works.

[jackr]

UK fuel prices reach new record bit of info...

Petrol prices have risen sharply over the past month

The average prices of both unleaded petrol and diesel have reached its highest level yet, according to the AA Motoring Trust.

The average petrol price reached 96.13p per litre on Thursday, while diesel stood at 98.81p per litre, the AA said.

BP chief executive Lord Browne said soaring crude oil prices "may well create petrol prices above a pound a litre

The price of US light, sweet crude oil - a benchmark for global oil markets - hit a record high of more than $75 a barrel last week, and Brent crude, the European benchmark, touched $74 before falling back slightly

UK Petrol Prices for.........Thursday 27th Apr 2006.(Bank hol weekend)

Avg. Min. Max.

Unleaded: 96.3p 90.9p 104.9p

Diesel: 98.9p 93.9p 109.9p

LRP: 99.4p 94.9p 103.9p

Super: 101.6p 93.9p 109.9p

LPG: 45.0p 38.9p 49.9p

Almost 80 baht a ltr......Time to move house.....

The pound's about 68 baht at the mo, so Super in the UK is about that going by your table. It was about 13 baht per litre a few years back for petrol in Muang Thai, while the UK was about 80 pence (about 60 baht), so perhaps 5 times more. Now the difference between the UK and Thailand is not much under half

[Heng]

I don't know about all of the gasoline distributors, but my friends at PTT and Conoco (Jet/Jiffy around these parts) assure me that the only folks hurting are folks who can't afford the higher prices. We only discussed benzene, didn't talk much about other petroleum products upstream/downstream.

Their margins are as healthy as ever.

Alas, there are far more people in the "hurting" category worldwide than in the "non-hurting" category. Do your friends have any thoughts about the extent of the pain or do they just write it off as, "they lose and we win and isn't greed good?"

Alas, like all businesses, management is in the first place (and rightfully so) responsible to the interests of their shareholders and stakeholders. It's business, not personal.

[Mighty Mouse]

It's terrible.....

Fuel prices are getting so high that petrol sniffers are now switching over to glue.

[elkangorito]

I don't know about all of the gasoline distributors, but my friends at PTT and Conoco (Jet/Jiffy around these parts) assure me that the only folks hurting are folks who can't afford the higher prices. We only discussed benzene, didn't talk much about other petroleum products upstream/downstream.

Their margins are as healthy as ever.

Alas, there are far more people in the "hurting" category worldwide than in the "non-hurting" category. Do your friends have any thoughts about the extent of the pain or do they just write it off as, "they lose and we win and isn't greed good?"

Alas, like all businesses, management is in the first place (and rightfully so) responsible to the interests of their shareholders and stakeholders. It's business, not personal.

There are 2 possible solutions to this...get rid of the stock market OR place very strict controls upon it (which has been an ongoing discussion for some time & for exactly these reasons).

[Johpa]

Alas, there are far more people in the "hurting" category worldwide than in the "non-hurting" category. Do your friends have any thoughts about the extent of the pain or do they just write it off as, "they lose and we win and isn't greed good?"

Alas, like all businesses, management is in the first place (and rightfully so) responsible to the interests of their shareholders and stakeholders. It's business, not personal.

Wrong, just plain wrong, at least the "rightfully so." Unless of course you believe that business exists independently and outside from the larger society.

When the greed begins to cause suffering to others then it is time to re-evaluate this busines school nonsense that "it is only business and not personal." A first step to correct this harmful delusion would be to remove the 14th amendment protection in the US for corporations. This would allow, in the US at least, for coporations to be more mindful of the interests of the larger society.

In Thailand of course there are individuals who believe that acting against competitors with extreme prejudice makes for good business. Some US Corporations also work out the number of deaths their business causes relative to profits in a macabre cost-benefit analysis. Clearly managers must work to maximize profits, but at some point it can no longer be at the expense and suffering of others.

But again, my main point was that the oil industry is not a truly competitive industry, that it is more a classic monopoly cartel. And that is the main reason for the record profits.

[Heng]

Alas, like all businesses, management is in the first place (and rightfully so) responsible to the interests of their shareholders and stakeholders. It's business, not personal.

Wrong, just plain wrong, at least the "rightfully so." Unless of course you believe that business exists independently and outside from the larger society.

Plain right. At least in the free capitalist world it is. It's awfully socialist/communist to want BOTH the benefits from tax revenue AND free handouts/subsidies of some kind from the business sector.

[Plus]

If there were market mechanisms in place we'd have better prices, I think. Right now everyone waits for PTT to make a move and no one would ever lower their prices unless all others do so.

If PTT weren't privatised, governement could interevene in their margins, it does it all the time anyway, but now it would go against shareholders interests (who are the same people sitting in the government, reportedly).

It's not about socialism - it's about transparency and free markets.

[MrSnrang]

Fuel prices obviously aren't too high for the average Thai driver when you can see them fill the roads at any time of the day.

Sometimes I wonder if people even have jobs here.

[Khun Jean]

Filling up the gas tank is like going to the dentist--they always say it won't hurt much, but it does.

I have a few shares in oil companies. Everytime i fill up the tank i smile a little.

Over the 20 years that i have these shares it has been and in the future will be a good compensation.

You can't beat them, so join them. At least a capitalist system gives you this oppertunity.

For Thailand it wil be very tough. First the fuel was subsidised, which is a wrong thing to do in the first place. Now it hits double hard.

[Heng]

Filling up the gas tank is like going to the dentist--they always say it won't hurt much, but it does.

You can't beat them, so join them. At least a capitalist system gives you this oppertunity.

I think a lot of people find that it's not so easy to join them. Membership has its costs. Hence they choose to whinge instead.

[backflip]

"It's awfully socialist/communist..."

Awfully. Perhaps you should realize that there's a difference between a economic policy and a political system. Perhaps you've subscribed to the "what's the difference between ignorance and apathy" mindset - "I don't know and I don't care".

[elkangorito]

The day will come when 'most people' will have shares in something. Basically, this means that the minority of people will be 'working' to support these non productive "let's just lounge around & get money for nothing' people, at which point in time & hopefully, the greedy stockmarket system will be realised as a detrimental system.

Money is made from people 'actually' labouring at a job. The Stock Market may seem to 'do something' for an economy today but what it especially excels at, is reducing the amount of 'hands on the real job'. Consequently, it will hopefully kill itself.

This is logic, not Communism.

The oil companies are now quite worried about the worlds energy resourses...not because they are 'worried' about energy but because they could lose money. Good ridance to oil & 'hello' to the alternative energy solutions that these greedy pigs bought . The next problem will be to combat the extreme price of these alternative solutions, since the oil companies have been buying these patents for years. They will own all the alternative energy solution patents & therefore they will charge what they want for these things when oil becomes very expensive.

Thank you to all the people who have invested in oil companies. You have inadvertently allowed the super high price of alternate energy, as opposed to just the high price of alternative energy.

Good ridance to the share/stock market. Hello to the workers of the world (who, unfortunately, keep the stock market alive)

[CL0R0X]

maybe you should ride your bicycle to work, better more move to China they ride bicycle to work.

[Phil Conners]

[sriracha john]

Chitchai slams police spokesman

Acting Prime Minister Chitchai Wannasathit yesterday took the spokesman of the Royal Thai Police to task for complaining to the media about the negative impact high fuel prices were having on police patrols rather than formally reporting the problem to the government for possible remedial action.

“Is it the duty of the National Police Spokesman to complain through the mass media? If they have any problems, they should report to me,” Pol Gen Chitchai said.

“I have not seen any report on this matter. I attended a meeting at the National Police Office yesterday and no one – neither the National Police Chief nor his deputy – mentioned anything.”

The acting premier was commenting on remarks made earlier by Pol Lt Gen Ajirawid Subarnbhesaj who told the press on Wednesday that crime rates were on the verge of increasing because the police lack the funds to buy fuel for all of their vehicles. He said police patrol units have been forced to scale back operations by up to 70 percent due to increased fuel prices.

Ajirawid said that the National Police Bureau budget was set two years ago when both pump and global oil prices were far below current levels.

Chitchai, insisted yesterday that the police budget for 2006 is sufficient, saying the high oil prices have affected everyone and if a specific problem arises the government will make adjustments to address it.

Metropolitan Police commissioner Pol Lt Gen Wiroj Chantarangsee confirmed that the force has been affected by the price hikes. He said patrols operate to ensure public safety, but some energy saving changes may have to be made such as instituting patrols on foot or bicycle instead of motorcycle. The force will make a request to the government for additional funds to cover fluctuations in fuel prices, he said.

- TD

[elkangorito]

Chitchai slams police spokesman

“Is it the duty of the National Police Spokesman to complain through the mass media? If they have any problems, they should report to me,” Pol Gen Chitchai said.

“I have not seen any report on this matter. I attended a meeting at the National Police Office yesterday and no one – neither the National Police Chief nor his deputy – mentioned anything.”

Maybe 'loss of face' has something to do with this?

[Jai Dee]

Fuel stations in Nakhon Sri Thammarat told to display oil prices

Internal Trade department of Nakhon Sri Thammarat(นครศรีธรรมราช) province has warned local petrol stations to display price tags. Those who violate the law will be prosecuted.

Director of Internal Trade department of Nakhon Sri Thammarat, Mr. Barirak Chusith(บริรักษ์ ชูสิทธิ์) said that small local gas stations have adjusted their oil prices higher than large stations namely PTT, Shell and Esso.

He said majority of small gas stations do not display oil prices which is deemed and they will be prosecuted according to the law. He has urged the residents to check out the prioce before having their gas tanks filled.

He said that customers who find no price tags displayed at gas stations can call the hotline number at 1569.

Mr. Barirak said that his department is keeping a close eye on the prices of consumer goods.

Source: Thai National News Bureau Public Relations Department - 15 May 2006

[Jai Dee]

More than 10 fuel stations have been closed due to the price hike

More than 10 fuel stations in Ubonratchathani (อุบลราชธานี) Province has been closed due to the surging oil price.

Mr. Sanchai Prathani (สัญชัย พระธานี), an officer of Department of Internal Trade (DIT) in Ubonratchathani, revealed that the soaring of oil price has affected the small business operators, causing more than 10 fuel stations in the province to halt their operations.

He added that the oil price hike has also reduced the number of tourists coming into Thailand from the Thai-Laos border.

Source: Thai National News Bureau Public Relations Department - 15 May 2006

[Jai Dee]

PTT will not adjust its fuel prices during these two days

PTT Company will not adjust its fuel prices over the next two days as it wants to consider the fuel prices in the global market first.

Mr. Chaiwat Surit (ชัยวัฒน์ ชูฤทธิ์), the PTT Deputy Managing Director, revealed that the company will not raise its oil prices, even though other oil traders have decided to increase in their fuel prices by 55 satang per liter.

He said that the oil prices in the global market are likely to decrease, but the fuel prices in the country cannot reduce as the average prices of benzene and diesel in the market are still below the actual prices.

He added that the amount of US’s reserve oil is enough, causing the oil demand to decrease.

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