Thai Energy Minister Narongchai rules out cut in energy prices

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Narongchai rules out cut in energy prices
PICHAYA CHANGSORN
THE NATION

BANGKOK: -- ENERGY MINISTER Narongchai Akrasanee yesterday dismissed calls for the government to cut energy prices to help fire up the flagging economy.

At a seminar held by state-controlled energy conglomerate PTT, Narongchai made it clear he would not return to a populist policy to subsidise oil prices since Thailand is an energy-deficit country.

"In summary, we can't be |lavishing on gasoline and diesel oil prices. For NGV (natural |gas for vehicles), we can only |help to delay the price rises," he said.

The Transport Ministry had asked him to delay his plan to increase NGV prices to better reflect their actual costs.

For liquefied petroleum gas, he will only allow a small price increase, if necessary, and will use the state-managed Oil Fund to help stabilise the LPG price if its cost surges.

There were growing calls for the government to use its energy price policy to help stimulate the economy, but the Energy Ministry would not bring back subsidies.

It would assist only by helping to push ahead investment in energy projects and ensuring a stable supply of energy.

"With regard to using a price policy to [help consumers to] buy energy cheaply, we can't give it more than what we're offering now. won't make a return to the populist policy," he said.

The private sector has submitted many renewable power projects, but "congestion" on the electricity grid has slowed down these investments.

The ministry is working with the three state electricity utilities to help solve the transmission problem with the priority given to waste-to-energy projects.

The ministry will conclude this month which solar farm projects will be allowed to go ahead.

About 2 gigawatts of solar power projects are expected to be invested this year, so Bt120 billion will be flowing into the economy.

The government should also push ahead with its plan to open a new bidding round for petroleum exploration and production, he added.

Source: http://www.nationmultimedia.com/business/Narongchai-rules-out-cut-in-energy-prices-30256770.html

-- The Nation 2015-03-26

[ezzra]

I'm not surprise at all, have we seen any other drops in consumer's product and services related

to fuel? non what so ever, fuel is a major component in every consumer products and service

we get and yet none have been adjusted to reflect to massive drop in oil prices,

but wait, once it will start to go up. you will see how prices will follow suit almost immediately..

such is commerce.. what's goes up. almost never comes down....

[Srikcir]

Narongchai is correct to rule out cut in energy prices, especially at a time when they are at historical lows. Better now than later in the year when the subsidies will increase multi-fold and cause much more financial pain to the government and to Thais used to lower prices.

That said, I don't think Narongchai has Prayut's approval simply because Prayut seems incapable of making any quick and sustained economic actions. Prayut actually favors populist policies to the extent that they quell public conflict. Prayut almost behaves like a politician who has been paralyzed by a waterfall of dissenting voices from every sector of Thai society. He does not feel the love he expected from Thais.

[Nuddy]

I wish they would allow roof top solar to be attached to the grid with meters running both ways.

At least that way the higher energy users would be able to produce a lot of their own energy and stop sucking on the meagre govt supplies especially in the Issan countryside.

[Strangebrew]

One would with the massive natual gas deposit in the Andaman sea you think it would be cheaper.

[h90]

I wish they would allow roof top solar to be attached to the grid with meters running both ways.

At least that way the higher energy users would be able to produce a lot of their own energy and stop sucking on the meagre govt supplies especially in the Issan countryside.

In Europe solar is nonsense because when you need electric most, no sun is shining.

But in Thailand when the aircons run the hardest the sun is the strongest. Just perfect.

I consider install some at our office. Because when the sun shines some electric is always used...don't need to send it to the grid.

[Pib]

Thailand needs to place wind and steam turbines around all government facilities in Thailand...there is enough hot air coming from those facilities to make Thailand energy independent for electricity generation.