LPG, NGV prices go up today

[webfact]

LPG
LPG, NGV prices go up today
The Nation

BANGKOK: -- The Energy Policy Administration Committee has decided to raise the price of liquefied petroleum gas (LPG) by 62 satang per kilogram and natural gas for vehicles (NGV) by Bt1 per kilo, effective today.

Public-transport vehicles will enjoy a subsidy and continue to pay the old NGV price of Bt8.50 per kilogram.

Areepong Bhoocha-oom, permanent secretary for the Energy Ministry, said the price increases were in line with a decision by the military's ruling National Council for Peace and Order (NCPO) on August 26.

The LPG price rises by 62 satang from Bt21.38 per kilo to Bt22.00. The rise is mainly from an increase in the LPG contribution to the Oil Fund from Bt3.0374 per kilogram to Bt3.6168.

To ease the burden on PTT, the NGV price increases by Bt1 from Bt10.50 per kilogram to Bt11.50.

Public-transport vehicles including taxis, tuk-tuks, public vans and buses will be subsidised through the energy-credit-card project, keeping their NGV price at Bt8.50 per kilo. PTT will shoulder this burden.

"The LPG price is raised to prevent incentives for misuse of LPG," Areepong said, adding that the National Energy Policy Committee would consider further increases in the future.

At its recent meeting, the Energy Policy Administration Committee also raised the diesel contribution to the Oil Fund by 40 satang from Bt1.70 per litre to Bt2.10, given its high marketing margin, Areepong said. The rise will not affect the diesel retail price.

After the rise in the diesel contribution, the Oil Fund's monthly take will rise from Bt2.84 billion per month to Bt3.48 billion, and it is expected to see its net position at zero by November. As of September, the fund's net position was in negative territory at Bt4.196 billion.

Charcrie Buranakanonda, PTT's senior executive vice president for the gas business unit, said that with the rise in the NGV price, PTT would earn Bt570 million more income this year.

"From 2003 to August 2014, PTT has suffered an accumulated loss of around Bt100 billion for NGV. This rise is to lessen the loss burden only," he said.

The company's NGV price subsidy for public vehicles will be about Bt133 million per month.

Source: http://www.nationmultimedia.com/business/LPG-NGV-prices-go-up-today-30244478.html


-- The Nation 2014-10-01

[Commerce]

What's with all the per kilo? Just tell us how much a litre is!

[dean008]

I would question how on earth taxis and Tuk tuks can be called public transport vehicles, they are private in so far as they decide who they transport and often at what cost

[airconsult]

What's with all the per kilo? Just tell us how much a litre is!

A litre of LPG weighs about 0.51Kg. (specific gravity about half that of water).

So - just over 11 per litre - places will make it 12 at that point, maybe even 13 as not sure he's talking retail or wholesale. (I saw 14 a couple of weeks ago, and also 11 in the same day - go figure)

[technologybytes]

LPG prices vary depending on location.

Here in Chiang Mai it's always nearly 2 baht per litre more than Bangkok, but still well below half the cost of running on Gazohol.

I usually pay 14.7 baht in Chiang Mai and often 12.9 in bangkok.

[webfact]

LPG and NGV prices adjusted to reflect their actual costs

BANGKOK, 1 October 2014 (NNT) - The Energy Policy Management Committee (EPMC) gave the green light to raise the prices of liquefied petroleum gas (LPG) and natural gases for vehicles (NGV).

Permanent Secretary for Energy Areepong Bhoocha-oom stated that LPG prices in the transport sector will increase by 0.62 baht per kilogram, from 21.38 baht to 22 baht a kilogram. The prices of NGV will also go up by 1 baht per kilogram, from 10.50 baht to 11.50 baht.

Public transport vehicles, however, will be allowed to pay for the old NGV price of 8.50 baht per kilogram through the use of an energy credit card granted from the previous government.

According to Mr. Areepong, the price adjustment for both of these natural gases is to reflect their actual costs in the market and to prevent any misuse of LPG and NGV. He also said that the adjustment is to reduce the burden of the Oil Fund from having to shoulder the costs of LPG and NGV.

Meanwhile, the EPMC has increased the levy paid on diesel to the Oil Fund by 40 satang per litre, from 1.70 baht originally to 2.10 baht per liter. However, the pump prices of the diesel fuel would remain relatively unchanged.

The move is expected to boost the earnings of the Oil Fund and reduce the deficit of the fund which is about 4 billion baht in the red. It is expected that the increase in the levy would bring the fund’s earnings back to a positive territory within 2 months.


-- NNT 2014-10-01

[Pib]

For anyone interested in the different fuel taxes/subsidies/profit margins/etc., you can go to the Thailand Bureau of Petroleum and Petrochemical Policy (EPPO) website, then under STRUCTURE about a quarter of the way down the page, click the "please click here" link to select and open Excel spreadsheets by date showing the different tax/subsidies/profit/etc., amounts. For example below is a partial snapshot of one of the Excel sheets for 30 Sep 14.

[tracker1]

Should not impact on inflation like the increase in fuel wont !!!!!

[kriswillems]

What is the amount of energy in 1 kg Thai LPG and Thai CNG (NGV)?

So, we'll be able to compare the prices of both alternatives.

Edit: never mind. It found the answers here:

http://en.wikipedia.org/wiki/Energy_density

The energy density per kilogram of CNG and LPG are comparable.

But the price of LPG per kg (not per litre) is double of the price of CNG per kg.

That makes LPG twice as expensive as CNG.

Edited October 1, 2014 by kriswillems

[rubl]

"At its recent meeting, the Energy Policy Administration Committee also raised the diesel contribution to the Oil Fund by 40 satang from Bt1.70 per litre to Bt2.10, given its high marketing margin, Areepong said. The rise will not affect the diesel retail price."

and

"Meanwhile, the EPMC has increased the levy paid on diesel to the Oil Fund by 40 satang per litre, from 1.70 baht originally to 2.10 baht per liter. However, the pump prices of the diesel fuel would remain relatively unchanged."

No change or relatively unchanged, it would seem someone had a substantial margin.

[jmacken306]

I'm new at this, but it looks like the government controls the price of fuel of all kind, why not let the station/company charge? Competition makes a company to stay or leave! I lived in the US where they had to mark-up things 15% to keep mom n pop stores in business, but the big name still could give you a bargain. There is no competition here except on the sidewalk! Then that is ??????

[rickirs]

The Thailand Energy Credit Card - a very populist policy. Glad to see the Prayuth regime is open-minded about continuing the program.

http://www.futuregov.asia/articles/2012/aug/20/thailand-launches-energy-credit-card-public-transp/

[Pib]

I'm new at this, but it looks like the government controls the price of fuel of all kind, why not let the station/company charge? Competition makes a company to stay or leave! I lived in the US where they had to mark-up things 15% to keep mom n pop stores in business, but the big name still could give you a bargain. There is no competition here except on the sidewalk! Then that is ??????

Yes, they do control it by basically keeping the price suppressed but it has cost money to do this. But at least the govt hasn't went "tax the heck out of fuel" route like they do in Europe where the price of fuel is much higher with the majority of the price per liter being tax.