Pump prices to be cut sharply midnight: Thailand

[chotthee]

Wow. Now that brings some happiness

Except for diesel users,but at least its not going up.

regards worgeordie

Did you miss that diesel will go up by 14 satang ?

Most Benz, BMW & Volvo use diesel.

Bad for rich people.

[wump]

I'll believe it when I see Shell drop its prices. Gasohol 95 has been extortionate for the last 2 years, and I don't see the big players abiding by this instruction whatsoever.

Correct me if I am wrong, but I think the 95 and 91 refer to octane ratings of straight gasoline, the 'E' of E85 and E20 refers to percentage of ethanol in the gasohol (gasoline plus alcohol) fuel.

Wrong. Gasohol 95 is E10 gasoline with an octane rating of 95 containing 10% ethanol. There is also Gasohol 91 (E10 with an octane rating of 91).

There is only one 'straight' gasoline, thats benzine 95, benzine 91 has been phased out.

All fuels (even LPG) have an octane rating. Adding ethanol makes it higher which is why E20 generally has an octane rating of 95.

Edited August 28, 2014 by wump

[lumply]

Higher profits made by Shell and BP equals higher dividends for the pension pot. Love it when they announce mega profits.

[Pundi6446]

Now why would diesel up, and all the others are coming down, diesel is the cheapest to refine, guess they got to make up the deficit from somewhere, so lets make it diesel.

[emilymat]

.

.However, evidence shows that energy subsidies have unintended consequences for the economy, the environment and social equity. They strain public finances, encourage over-consumption, and benefit wealthier citizens far more than the poor.

Where's that country that has recently had riots on the streets because the government subsidy on fuel is slowly being withdrawn?. Sure I saw it on TV. S America maybe.

Not decrying the current reductions but adding a word of caution for the longer term - as per the post above.

.

[biplanebluey]

I'll believe it when I see Shell drop its prices. Gasohol 95 has been extortionate for the last 2 years, and I don't see the big players abiding by this instruction whatsoever.

Correct me if I am wrong, but I think the 95 and 91 refer to octane ratings of straight gasoline, the 'E' of E85 and E20 refers to percentage of ethanol in the gasohol (gasoline plus alcohol) fuel.

Wrong. Gasohol 95 is E10 gasoline with an octane rating of 95 containing 10% ethanol. There is also Gasohol 91 (E10 with an octane rating of 91).

There is only one 'straight' gasoline, thats benzine 95, benzine 91 has been phased out.

All fuels (even LPG) have an octane rating. Adding ethanol makes it higher which is why E20 generally has an octane rating of 95.

Nah Think you got that one wrong

[fabphil]

Good stuff i only use gasoline 95 in my Harley Honda 125 so im a big winner yee ha

[ratcatcher]

I'll believe it when I see Shell drop its prices. Gasohol 95 has been extortionate for the last 2 years, and I don't see the big players abiding by this instruction whatsoever.

Correct me if I am wrong, but I think the 95 and 91 refer to octane ratings of straight gasoline, the 'E' of E85 and E20 refers to percentage of ethanol in the gasohol (gasoline plus alcohol) fuel.

Wrong. Gasohol 95 is E10 gasoline with an octane rating of 95 containing 10% ethanol. There is also Gasohol 91 (E10 with an octane rating of 91).

There is only one 'straight' gasoline, thats benzine 95, benzine 91 has been phased out.

All fuels (even LPG) have an octane rating. Adding ethanol makes it higher which is why E20 generally has an octane rating of 95.

Nah Think you got that one wrong

If it was a fuelish answer to a fuelish question , do enlighten us bpb. Thanks.

[lvr181]

I'll believe it when I see Shell drop its prices. Gasohol 95 has been extortionate for the last 2 years, and I don't see the big players abiding by this instruction whatsoever.

Bet they will. Absolutely unthinkable that they will not.

There's a Shell by my house that seems to do as they please. They always raise the price of Gasohol 2-3 days before it is announced that it go will up, and when it is announced that the price will go down, they also wait 2-3 days before reducing the price.

Now is your chance not to be chicken shit about it - report them if they don't comply with NCPO. Will you?

[JacChang]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I'll believe it when I see Shell drop its prices. Gasohol 95 has been extortionate for the last 2 years, and I don't see the big players abiding by this instruction whatsoever.

Correct me if I am wrong, but I think the 95 and 91 refer to octane ratings of straight gasoline, the 'E' of E85 and E20 refers to percentage of ethanol in the gasohol (gasoline plus alcohol) fuel.

Wrong. Gasohol 95 is E10 gasoline with an octane rating of 95 containing 10% ethanol. There is also Gasohol 91 (E10 with an octane rating of 91).

There is only one 'straight' gasoline, thats benzine 95, benzine 91 has been phased out.

All fuels (even LPG) have an octane rating. Adding ethanol makes it higher which is why E20 generally has an octane rating of 95.

Wump, aren't you just repeating what DekDaeng wrote? Or am I reading something wrong here.

Dek Daeng stated in his post that the 95 or 91 refers to octane, and that is correct.

He then stated the E# refers to the percentage of ethanol to alcohol, which is again correct.

Then you counter his post by saying Gasohol 95 is E10 with 10% ethanol and 95 octane.

Please do educate me, where the wrong is.

[brucec64]

Please note again, global price drop. forget the propaganda-re populist polices.

I'll point you to the article in the nation - it is the excise tax that will be cut from bt7 per litre to bt3.89 for 95-octane. This is a tax cut, and represents an increase in the overall fuel subsidy. The logic that the tax can be cut because the global prices have decreased does not make much sense - a global price decrease should result in a local price decrease and the excise tax should remain the same.

http://www.nationmultimedia.com/business/Petrol-prices-down-as-excise-taxes-are-cut-30241976.html

Petrol prices are expected to go down from Bt1-Bt3.89 per litre at midnight, as the National Energy Policy Committee approved a cut in excise taxes.

The committee considered that the taxes can be cut now that global petrol prices ease.

As of today, the Excise Department collects Bt7 per litre on 95-octane petrol, Bt6.30 on gasohol 95 and gasohol 91, and Bt5.60 on gasohol E20.

Following the cut, 95-octane petrol price will be slashed by Bt3.89 per litre. Gasohol 95 prices will be down by Bt2.12, gasohol 91 by Bt1.86, and E20 by Bt1. The excise tax of Bt5 per litre on diesel has been waived since 2011, which costs over Bt7 billion in subsidies per month.

ACM Prajin Juntong, a deputy chief of the National Council for Peace and Order (NCPO), is chairman of the committee.

Global petrol prices ease today as the US reported an increase in stockpiles. The release was ahead of the Labour Day holiday that marks the end of the country’s peak-demand driving season.

At 8pm, a caravan will depart Energy Complex to check the existing stocks at oil depots and fuel stations, before the tax cut will take effect. The caravan will be led by Energy Permanent Secretary Areepong Bhoo-chaoom.

[thesetat2013]

Dang and i just filled my car

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[maake55555]

SHELL always seems to have lots of problems. It happened twice to me now that the pump was not reset to zero before they started pumping. And when I complained with Shell customer service I got a lame excuse.

I avoid Shell as much as I can while spending over 10.000 on gasoline a month

It is not a problem, it is robbery, I have had this happen to me with my bike, and my vehicles. I now jump out of my vehicle and look at the meter before they start pumping gas. It has happened to me at shell, texico and other places if you do not catch them in time. The last time at shell I jumped out just as the guy was adding the 100B to the meter and I called him on it and he got mad as a jack rabbit. You know they are going to rip you off when they direct you to where they want you to park for gas so you cannot see what they are doing. My wife never catches them and don't know if she even cares as she never looks at what they are doing. I tell her to never let them under the hood, start pumping gas without her checking the meter. I know she doesn't when she is alone. Just my 2 cents!!!!!

[wilcopops]

yes - all the middle-classes with petrol engined cars will be delighted. But all those trying to earn a living with a diesel truck will feel they have been slapped.

do you think there might be some politics involved?

[bdenner]

So much 'Hoo Haa' about nothing, take a look in 2 weeks and no change will be seen _ MARK MY WORDS.

Edited August 28, 2014 by bdenner

[davidstipek]

I'll believe it when I see Shell drop its prices. Gasohol 95 has been extortionate for the last 2 years, and I don't see the big players abiding by this instruction whatsoever.

Bet they will. Absolutely unthinkable that they will not.

There's a Shell by my house that seems to do as they please. They always raise the price of Gasohol 2-3 days before it is announced that it go will up, and when it is announced that the price will go down, they also wait 2-3 days before reducing the price.

No... I think no one knows how and they wait for Manager to do. I owned several Shell Stations in USA. Some workers are afraid they can do Sign numbers but in Computer...nO!!

[shrimpythailand]

Gen P has a few 100 ? billion baht to spend now that the rice scam money is off... but maybe tourist money is down a bit or a lot over the visa deal, we will see if new stuff coming out tomorrow? but if they cut back on the wasted money scams and maybe do some more corruption homework they will have a few more 100 billion baht to play with... but dropping the excise tax is also a nice way of getting the poor vote for lower gas prices... let's see how much Gen P and boys can save Thailand and stop the flow of wasted money all over the place and put money to proper good use...talk about moving mountains - but I think they are going to try to move a lot of mountains before all the dust settles.... 5 5 5

[Mudcrab]

Seems a bit unfair to only give a few hours warning if the Gas stations are privately owned or are they all owned by the oil companies which is what I suspect.

I've always suspected them to be privately or publicly owned too.

Must be a conspiracy.

[Benmart]

SHELL always seems to have lots of problems. It happened twice to me now that the pump was not reset to zero before they started pumping. And when I complained with Shell customer service I got a lame excuse.

I avoid Shell as much as I can while spending over 10.000 on gasoline a month

Thanks for the "reset" reminder. I get out of the car and chat with the employees, while checking to make sure they zero the pump before I place my order.

[Mudcrab]

Please note again, global price drop. forget the propaganda-re populist polices.

I'll point you to the article in the nation - it is the excise tax that will be cut from bt7 per litre to bt3.89 for 95-octane. This is a tax cut, and represents an increase in the overall fuel subsidy. The logic that the tax can be cut because the global prices have decreased does not make much sense - a global price decrease should result in a local price decrease and the excise tax should remain the same.

http://www.nationmultimedia.com/business/Petrol-prices-down-as-excise-taxes-are-cut-30241976.html

Petrol prices are expected to go down from Bt1-Bt3.89 per litre at midnight, as the National Energy Policy Committee approved a cut in excise taxes.

The committee considered that the taxes can be cut now that global petrol prices ease.

As of today, the Excise Department collects Bt7 per litre on 95-octane petrol, Bt6.30 on gasohol 95 and gasohol 91, and Bt5.60 on gasohol E20.

Following the cut, 95-octane petrol price will be slashed by Bt3.89 per litre. Gasohol 95 prices will be down by Bt2.12, gasohol 91 by Bt1.86, and E20 by Bt1. The excise tax of Bt5 per litre on diesel has been waived since 2011, which costs over Bt7 billion in subsidies per month.

ACM Prajin Juntong, a deputy chief of the National Council for Peace and Order (NCPO), is chairman of the committee.

Global petrol prices ease today as the US reported an increase in stockpiles. The release was ahead of the Labour Day holiday that marks the end of the country’s peak-demand driving season.

At 8pm, a caravan will depart Energy Complex to check the existing stocks at oil depots and fuel stations, before the tax cut will take effect. The caravan will be led by Energy Permanent Secretary Areepong Bhoo-chaoom.

Please explain.

You are saying that they cut the fuel tax, which means they get less tax take from the fuel sales.

Where does subsidy come into the equation?

Are you saying that the fuel is being sold at less than free market cost and is already being subsidised by the Government. Good luck with that argument.

[Pib]

Please explain.

You are saying that they cut the fuel tax, which means they get less tax take from the fuel sales.

Where does subsidy come into the equation?

Are you saying that the fuel is being sold at less than free market cost and is already being subsidised by the Government. Good luck with that argument.

In this case when the govt temporary reduces the standard excise tax on fuel they consider it a subsidy to the public.

Makes it sound like they are throwing in extra money to cover part of the fuel cost, but actually the fuel cost is still fully covered but the govt takes in less tax revenue.

[Andyfarquar]

Fuel prices all around the world are set by the oil companies, together with government taxes and they are the biggest single commodity that supports their economies. I used to manage a BP filling station in UK back in the 80's and the profit per litre was cleverly calculated to allow each garage to make just enough to survive, but not enough to ever get rich as long as you played by the rules (bought all your spirit / diesel from the oil company who owned the site or held the franchise etc. We had to check the prices charged by our competitors either side of us to be sure we were charging the same price or else we lost profits or lost customers, depending on whether we were over or under them. My boss played by the rules but got a little bit cocky in her private life and went bankrupt..... (owing me thousands). This pie chart is out of date but it gives you an idea of the reality in UK terms on unleaded petrol. I believe the data is similar on all fuels in all developed countries except the Middle East. In my humble opinion, this situation will last as long as the governments stifle new technologies.... until the Global Water Shortage becomes critical or the $ collapses. Then watch out but that's for a different thread....

[Pib]

Seems to be routine in most Europeans countries for around half of more of the cost of fuel is caused by taxes.

Below is a pie chart showing U.S. fuel cost breakout in 2012. Taxes only amount to 12% of the total cost per gallon.

Edited August 28, 2014 by Pib

[bubba]

It will be interesting to see what this site says tomorrow.

[Jeremy50]

Now why would diesel up, and all the others are coming down, diesel is the cheapest to refine, guess they got to make up the deficit from somewhere, so lets make it diesel.

It ought to be because diesel is the most polluting. But since when has anyone in Thailand been concerned about the environment? Those trucks and buses that spew out black smoke are a disgrace.

[derekwyoung]

Is there any change for LPG

[wilcopops]

Now why would diesel up, and all the others are coming down, diesel is the cheapest to refine, guess they got to make up the deficit from somewhere, so lets make it diesel.

It ought to be because diesel is the most polluting. But since when has anyone in Thailand been concerned about the environment? Those trucks and buses that spew out black smoke are a disgrace.

Diesel is subsidised in Thailand and has been your years. It is sold at an artificial price to keep the cost of goods and services down.

So a further cut would just be an increase in an already cheap fuel.

It is meant to be on or below 30 baht per litre.....maybe this government has seen fit to save money on diesel subsidies and transfer it to gasoline - - this would be a political move?

[rickirs]

There is simply no practical purpose to this price cut by a reduction in the excise tax.

In the last two months crude oil price futures dropped about 5% per month, taking crude oil futures to a low level not seen since 2009. Retail fuel prices for Bangkok & vicinities using data reported by the Bureau of Petroleum and Petrochemical Policy shows that retail pump prices changed between Jan. 4, 2014 and August 7, 2014 as follows:

ULG 95 increased 0.6%

E10 decreased 2.4%

E20 decreased 2.8%

E85 decreased 1.2%

NCPO's cut in excise tax amounts to another 5% average cut in retail price for ULG95, E10 and E20. So following a 28% revenue shortfall at the end of the Yingluck regime in 2014, new Junta created debt to pay rice farmers, new subsidies for rice and rubber farmers, civil service pay raises, mega projects, etc., comes this further cut to government revenues. Most countries reduce fuel excise taxes when retail fuel prices increase substantially in a short period, ie., when crude oil prices increase, to lessen the burden on citizens at the pump, especially for the low income class. Thailand is doing the opposite.

From an economic viewpoint, the fuel excise tax should remain the same if they are being tied to crude oil prices. Even if tied to the retail price, there is no cause to lower the excise tax as retail prices are dropping. So why is the NCPO essentially throwing an economic gift to the consumers when it may contribute to more government debt? While Gen. Prayuth has espoused not to use populist policies that are seen as a means to corrupt the political loyalty of the Thai people, he too seems to be doing the opposite as well.

[wilcopops]

Fuel prices all around the world are set by the oil companies, together with government taxes and they are the biggest single commodity that supports their economies. I used to manage a BP filling station in UK back in the 80's and the profit per litre was cleverly calculated to allow each garage to make just enough to survive, but not enough to ever get rich as long as you played by the rules (bought all your spirit / diesel from the oil company who owned the site or held the franchise etc. We had to check the prices charged by our competitors either side of us to be sure we were charging the same price or else we lost profits or lost customers, depending on whether we were over or under them. My boss played by the rules but got a little bit cocky in her private life and went bankrupt..... (owing me thousands). This pie chart is out of date but it gives you an idea of the reality in UK terms on unleaded petrol. I believe the data is similar on all fuels in all developed countries except the Middle East. In my humble opinion, this situation will last as long as the governments stifle new technologies.... until the Global Water Shortage becomes critical or the $ collapses. Then watch out but that's for a different thread....

unleaded-breakdown.GIF

They always say that UK has the CHEAPEST fuel in the world......only it has the highest taxes.........this may not be 100% accurate but it makes the point on how pump prices vary.

If the tax is set at a fixed amount say 100 cents and the cost before tax is 100 cents (total 200cents) then a 100% rise in fuel cost would only come out at a 50% rise on the price at the pump. (300 cents)

[Thanet]

How populist s that?