Thailand: Cooking gas price cap extended

The price of cooking gas for household use will remain capped at 24.87 baht per kilogramme until the end of October, requiring a government subsidy of 7.87 baht per kg, the Energy Policy Administration Committee said on Thursday.

The committee had earlier been expected to start raising the price of of liquefied petroleum gas (LPG) by one baht per kilogramme per month in order to ease the burden on the Oil Fuel Fund, which has run up debts totalling 120 billion baht from subsidising fuel — mainly diesel and cooking gas — this year.

The price of a 15kg cooking gas cylinder, the most widely used type, will be fixed at 408 baht excluding transport until Oct 32, said the committee, chaired by Energy Minister Supattanapong Punmeechaow. The aim is to help consumers manage their energy costs at a time of volatile prices.

The committee also approved a capped price of compressed natural gas for general motorists at 16.59 baht per kg, compared with real market prices that have fluctuated between 29 and 34 baht.

Taxi drivers registered for a special subsidy with the majority state-owned energy company PTT, the sole CNG seller, will pay a capped retail price of 13.62 baht per kg from Sept 16 to Dec 15.

Mr Supattanapong said that under the CNG subsidy plan that began on Nov 1 last year, PTT has paid subsidies totalling 6.75 billion baht.