Thailand
Thailand: Ministry cuts oil price, continues gas subsidy
The Energy Ministry has cut the ex-refinery oil price by 0.5 baht and will continue to subsidise gas purchases as part of its ongoing measures to provide relief to an economy battered by Covid-19.
The Energy Policy Administrative Committee (Epac) approved today the price cut in response to a call from a non-governmental organisation, Green Butterfly Ex, in March for authorities to remove premium and insurance fees from the ex-refinery oil price structure, said Energy Minister Sontirat Sontijirawong.
He said the group’s demand was approved by Epac back in March, but had not been implemented because of delays related to the outbreak.
New infection rates were not under control until May, said Mr Sontirat.
The new price will take effect tomorrow morning, applying to diesel and gasoline.
Epac also prolonged the subsidy for liquefied petroleum gas (LPG) prices for another three months to the end of September, previously set to expire next Wednesday, he said.
The committee expects to use 248 million baht monthly from the Oil Fuel Fund Administration Office to cap the price at 318 baht per standard LPG cylinder (15 kilogramme), down from 363 baht per cylinder, or a subsidy of three baht a kg.
LPG is used largely for cooking, affecting the cost of living for many households.
Epac also agreed to restructure the price benchmark of compressed natural gas (CNG) for goods transport operators, basing its calculation on diesel price rather than cost-plus method, in order to make the CNG price cheaper and fairer.
The new CNG price will be at around 75% of that for diesel. If it is based on B10 diesel, the CNG price will decrease to 12.8 baht a kg, down from 15.3 baht a kg.
The new benchmark price is expected to take effect after approval from the National Energy Policy Council in July.
As for operators of public transport — buses, taxis and passenger vans — they pay only 13.6 baht a kg because of state subsidies under the welfare card scheme. The subsidy will expire in July.
Epac is prolonging the aid by further capping the CNG price at 10 baht a kg.
Source: https://www.bangkokpost.com/business/1935212/ministry-cuts-oil-price-continues-gas-subsidy