Thai Energy Ministry to overhaul energy pricing structure

[webfact]

Energy Ministry to overhaul energy pricing structure



BANGKOK, 13 November 2014 (NNT) – The Ministry of Energy is planning to gradually adjust the entire pricing structure for energy to reflect the true cost after the end of this year.

The Minister of Energy Narongchai Akrasanee revealed that the ministry will adjust the energy pricing structure after the New Year holiday, which is a one-month delay from the initial plan to adjust the price at the beginning of December.

He said that although the oil price in the global market is still low, the Ministry would take this opportunity to collect revenue and add it to the oil fund. The Ministry will adjust the Oil Fund’s rate of diesel oil tax from 3.70 baht per liter to 5.60 baht per liter in the form of excise taxation.

He believes that this price change will not affect the public too much as the adjusted price will be slightly higher than the price prior to the adjustment.

The Minister of Energy has also mentioned that the adjustment of LPG and NGV must be postponed too since there are 1.2 million cars equipped with LPG tanks as currently, LPG price is much cheaper than petroleum.

He said that it is crucial to adjust the price structure of LPG and NGV to reflect the real cost. However, the adjusted price will still be lower than petrol.

The Minister of Energy has pressed that the adjustment of the entire pricing structure will be done gradually to stir less pricing distress in the public. The Ministry also plans to reduce the use of natural gases by pushing for the construction of the coal power plant in Krabi province, which is still receiving public opposition.

The government will still continue to push for the construction of the coal power plant project, but the government is also considering the coal power plant's construction in a neighboring country instead, if the existing location can’t be used, said the Minister of Energy.


-- NNT 2014-11-13

[terryp]

more Bull.. its all smoke and mirrors which comes down to an increase as usual ...oil is down over 30% from last year

[JOC]

As long as Thailand don't go nuclear

[JOC]

The foodvendors (private enterprises) are warned against raising their prices.

At the same time the state are adding a higher tax on diesel, adding up to 100 baht more for a full tank!

The "Returning happiness to the people" programme is taking some strange twists and turns!!

[webfact]

Energy pricing structure revamped next year



BANGKOK: -- The energy pricing structure will be entirely revamped next year to reflect the true cost beginning next year, according to the Ministry of Energy.

Energy minister Narongchai Akrasanee stated that the ministry will adjust the energy pricing structure after the New Year festival, which is a one-month delay from the initial plan to adjust the price at the beginning of December.

Although the oil price in the global market is still low, he said the ministry would take this opportunity to collect revenue and contribute it to the oil fund.

The Ministry will adjust the Oil Fund’s rate of diesel oil tax from 3.70 baht per liter to 5.60 baht per liter in the form of excise taxation.

He believed that this price change will not affect the public too much as the adjusted price will be slightly higher than the price prior to the adjustment.

But he mentioned that the adjustment of LPG and NGV must be postponed too since there are 1.2 million cars equipped with LPG tanks as currently, LPG price is much cheaper than petroleum.

He said that it is crucial to adjust the price structure of LPG and NGV to reflect the real cost. However, the adjusted price will still be lower than petrol.

The Minister of Energy has pressed that the adjustment of the entire pricing structure will be done gradually so as not to add higher burden to the public.

The Ministry also plans to reduce the use of natural gases by pushing for the construction of the coal power plant in Krabi province, which is still being opposed by the locals.

But he said the government will still continue to consider the coal power plant’s construction in a neighboring country instead, if the existing location can’t be used.

Source: http://englishnews.thaipbs.or.th/energy-pricing-structure-revamped-next-year/


-- Thai PBS 2014-11-13

[RustBucket]

The only way is up.

My electricity bill is about £50 more than in the UK per month... This is shocking electricity pricing.

[NeverSure]

This is something else that could be the downfall of Thailand. Thailand imports more oil than it produces. Right now with low oil prices it isn't too bad, but as it uses up its own supplies and buys more and more, it will be very detrimental.

Countries which thrive without their own oil have a high GDP per capita. In other words they make a lot of money from something else like manufacturing.

But Thailand manufactures for others, contributing cheap labor and letting other countries make the big profits. Thailand has a low GDP per capita and lacks the money to thrive economically.

Thailand also is still an agricultural economy if one looks just at what Thailand itself owns. It doesn't grow many high value crops because the land or climate isn't suited for it. It also taxes the crap out of anything that might be high value such as wine, discouraging production.

Thailand will simply have to start burning more coal to generate electricity. They burn it dirty and pollute their air just as China does. Even that won't replace oil and natural gas for other uses.

Thailand is the hub of getting itself between a rock and a hard place.

[NeverSure]

more Bull.. its all smoke and mirrors which comes down to an increase as usual ...oil is down over 30% from last year

I paid US$2.40 (about 79 baht) per US gallon for regular unleaded gas today. That's down about 25% from recent prices. There are about 3.8 liters in a US gallon so its easy to do the math.

This price I paid includes reasonable state and federal road taxes.

People keep telling me that Thailand living is cheap. Rent is cheap. Cheap Thai food is cheap. Many other things like clothes, cars, Western quality food are shockingly expensive.

Thailand is getting as bad with taxes including import taxes as many Western countries.

[tomross46]

Any restructuring in the energy cost should take into consideration the customer. In the past only the share holders and the amount of money paid to them was taken into consideration. Since the Ministry of finance owns a large portion of all the shares, and they have a large quantity of bottom feeders, the citizens are punished.

[orange31]

The only way is up.

My electricity bill is about £50 more than in the UK per month... This is shocking electricity pricing.

Actually the price of electricity in Thailand is about half of the price in the UK (4.5 Baht/KWH vs around 16p/KWH or 8 Baht/KWH).

The main difference must be that you use a lot more electricity in Thailand than you do in UK, which would be almost 100% down to the air conditioning units. If you turned these off your bill would drop to a shocking low amount.

[prism]

more Bull.. its all smoke and mirrors which comes down to an increase as usual ...oil is down over 30% from last year

I paid US$2.40 (about 79 baht) per US gallon for regular unleaded gas today. That's down about 25% from recent prices. There are about 3.8 liters in a US gallon so its easy to do the math.

This price I paid includes reasonable state and federal road taxes.

People keep telling me that Thailand living is cheap. Rent is cheap. Cheap Thai food is cheap. Many other things like clothes, cars, Western quality food are shockingly expensive.

Thailand is getting as bad with taxes including import taxes as many Western countries.

Yeah, something is up. We're not seeing any real price reductions at the pump. Fuel taxes used to be fairly low here a few years ago.

[i claudius]

As long as Thailand don't go nuclear

What a nightmare a Thai in charge of a nuclear plant,they are bad enough riding a motor bike

[slapout]

Wiith past record of tax collection on fuels, I doubt that most of the population will see any personal benifet. Refining, and transport charges/fees paid by consumers here are excessive to the extreme, taxes when collected appear to be squandered or stolen and pump prices show little reflection of world oil prices.

[ThaiKneeTim]

The only way is up.

My electricity bill is about £50 more than in the UK per month... This is shocking electricity pricing.

The £550bn subsidy on traditional fuels, and £150bn subsidy on renewables by UK government might explain that.

[Ulic]

Someone is making a pile of money. Gas prices in Thailand are very similar to prices in Toronto Canada

but the fuel price in Canada has about 33% tax included. So I don't understand Thailand's so called fuel

subsidy/tax structure. It should be marked clearly at the pump. Cost of fuel/Stare and Federal taxes.

Transparency is what is needed.

[bangon04]

"adjust the entire pricing structure for energy to reflect the true cost "

in what universe does adding taxes somehow reflect the "true cost" of any commodity?

Maybe they mean that removing artificial subsidies will bring the pump prices closer to the market cost of production and delivery, but then adding taxes will distort that little calculation ..

[BSJ]

Up here in the country the wife's house and her mums house are joined by a common breezway. Mum's metered at 3 baht a unit and the wife's meter 5 baht cos it's 15 amp. But mum's elderly so gets the first 50 units free! We have 2 air cons.....but rarely use them. What we need at this time of year are thicker blankets!