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Thailand: Oil price increase hurting manufacturers, poll reveals
The global oil price surge is affecting the industrial sector as large numbers of factory operators have already borne the brunt, according to a recent poll conducted by the Federation of Thai Industries (FTI).
Up to 49.3% of 150 executives in 45 industries told the pollster the manufacturing sector encountered moderate impact from the increasing oil prices, said Wirat Uanarumit, vice-chairman of the FTI.
Some 38% said the sector bore a “considerable impact” while only 12% said the impact was small.
According to the findings, the respondents said the most noticeable impact was seen in the rise in the prices of goods and services (88%), followed by more expenses in transportation and logistics (84%) and a higher inflation rate, which will dampen people’s purchasing power (34%).
A lack of raw materials exported by China due to the energy shortage in the country came fourth with 25.3%.
The respondents were also asked to suggest measures which the state could implement to relieve the impact of the oil price surge, said Mr Wirat.
They want authorities to put a cap on electricity prices until the end of this year (66%), followed by an adjustment of the energy price structure for temporary use lasting 3-6 months (56.7%), and use of money from the oil fund or the state budget to curb energy prices (54%).
A controversial proposal to reduce excise and value-added taxes on oil and gas came fourth with 53.3%, according to the findings.
The executives also suggested long-term plans to relieve the impact of energy price fluctuations in the future.
They want the state to promote renewable energy to reduce dependence on fossil fuel (74.7%), followed by campaigns for saving energy, more use of technology to increase production efficiency (72.7%), and fair energy prices (64%).
Source: https://www.bangkokpost.com/business/2208023/oil-price-increase-hurting-manufacturers-poll-reveals