Thai retailers urged to hold down petrol, gasohol prices

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GASOHOL PRICE
Retailers urged to hold down petrol, gasohol prices
The Nation

BANGKOK: -- The Energy Policy and Planning Office has asked retailers to cooperate in lowering petrol and gasohol retail prices to reflect the current weakening of global oil prices, said Energy Minister Narongchai Akrasanee, who chaired yesterday's EPPO meeting.

To obtain a positive Oil Fund balance and to support the planned energy-price restructuring process, the EPPO resolved to raise the diesel-fuel contribution to the fund by Bt0.70 a litre, from Bt3 per litre to Bt3.70, effective today. This should result in improved liquidity of the Oil Fund of about Bt1.09 billion a month, from the current monthly income of between Bt5.12 billion and Bt6.22 billion.

The retail price of diesel will remain unchanged at Bt29.39 a litre, Narongchai said.

Oil Fund

The status of the Oil Fund as of Sunday was a negative balance of Bt1.98 billion. With the new contribution rate, the Oil Fund balance is expected to show a positive figure within 10 days.

Contributions to the Oil Fund help alleviate oil-price volatility and provide a mechanism to support the agricultural sector in terms of alternative energy, such as ethanol and biodiesel, Narongchai said.

Meanwhile, global oil prices have continued to decline since the last EPPO meeting. The Dubai crude-oil market closed at US$85.05 per barrel as of Friday, 95-octane petrol at $99.65 a barrel and diesel at $97.62.

Data from the first eight months of this year show that imports still account for 85 per cent of Thailand 's total sourcing of crude oil. Hence the Energy Ministry is urging consumers to use oil efficiently as they can help lessen this burden on the country.

Furthermore, the EPPO meeting resolved to allow retailers (in accordance to Article 7 of the Oil Trade Act of 2000) that sell liquefied petroleum gas to the transport sector to contribute a higher rate to the Oil Fund, at Bt4.2056 per kilogram. Thus the retail price of LPG for the transport sector will rise by Bt0.63 from Bt22 per kilo to Bt22.63, which equals the LPG price for the household sector, effective today. This is to curb illegal sales of LPG from one sector to another, Narongchai said.

Source: http://www.nationmultimedia.com/business/Retailers-urged-to-hold-down-petrol-gasohol-prices-30245899.html


-- The Nation 2014-10-21

[chainarong]

You can't expect business to take the fall if prices rise at the bowser, just because the administration interfered in the pricing structure , you know very well the disaster that happened with Thaksin Shinawatra administration when they interfered with pricing , so go figure.

[jacko45k]

Due to recent tumbling oil prices, I would hope they can go down rather than be 'held down'.

[Soutpeel]

You can't expect business to take the fall if prices rise at the bowser, just because the administration interfered in the pricing structure , you know very well the disaster that happened with Thaksin Shinawatra administration when they interfered with pricing , so go figure.

Here is a novel idea for the government to achieve the same thing, reduce temporarily the excise tax

[worgeordie]

Price of oil has dropped by a quarter since June,but the prices at the pumps

has hardly moved.on the other hand when the price of oil rises by a couple

of dollars,the price at the pumps goes up within a week or two.I suppose

when there are cartels prices will be kept high,at the pumps ,anyway.

regards Worgeordie

[jaywalker]

Due to recent tumbling oil prices, I would hope they can go down rather than be 'held down'.

Several years ago oil went from $35 to $135 a barrel. Gasoline/petrol prices in the USA went from $1.80 a gallon to $3.50++ a gallon.

As the markets eased off on the prices, conniving "lawmakers" instituted a plethora of new gasoline taxes.

Hell, the sheeple (sheep - the populace) had gotten used to those prices.

I trade oil futures, & it was a blip on the charts, yet the price at the pump remains the same more or less.

The actual cost of a gallon of 87 octane gas is less than $1.00 at the pump.

The other 2/3rds is taxes that get squandered. The US State of Georgia has been milking a road construction project near here for YEARS now.

I see it all over where equipment hasn't moved for months.

Corruption, favoritism & vote buying is alive & well in the "Land of The FEE & Home of the Tax Slave".

Back on the Thailand side, what do they expect the gas station owners to do? Operate at a loss?

Price fixing has been tried by governments for centuries, as have capital controls (you have to claim export of money for scrutiny), and debasement of currency as well.

I think the earliest recorded experiment happened in Babylon a few millinea ago & wound up a disaster.

Have a look at what's happening in Argentina today. They have a thriving black market and bread-lines due to government price fixing, and have defaulted on sovereign debt twice since 2001.