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PETROLEUM
YUTHANA PRAIWAN
Poonpirom: CNG is drivers' best choice |
Local retail fuel prices may soon top 50 baht a litre as world oil prices continue to rise on the weakening US dollar, supply tightness and political tensions in oil exporting regions, Energy Minister Poonpirom Liptapanlop warned yesterday.
Apart from those reasons, oil consumption was still growing strongly, driven by demand in the emerging Asian economies, so it was not possible for oil prices to drop back below $70 a barrel, she said.
With oil prices soaring, subsidising fuel costs that have reached 45 baht a litre in Thailand has become a huge financial burden. Some other countries have abandoned or scaled back assistance sharply.
Locally, the National Energy Policy Council is expected to decide soon whether to extend the current diesel subsidy of 90 satang a litre.
The Energy Ministry initiated the subsidy by cutting the levy contribution to the state Oil Fund and Energy Conservation Fund in March. The scheme is scheduled to expire this month, but as with other subsidies, the government wants to prolong the period.
In the meantime, Lt Gen Poonpirom reiterated that compressed natural gas is the best solution for dealing with high oil prices, saying that filling stations and natural gas fleets were now expanding.
Manoon Siriwan, an energy expert and former deputy managing director of Bangchak Petroleum, said oil prices may rise to US$150 a barrel over the next couple of weeks, driving pump prices to 48 baht a litre.
He said the government should abandon the blanket price subsidy but continue with short-term subsidies for some needy sectors such as agricultural and public transport.
Mr Manoon pointed that a shortage in liquefied petroleum gas (LPG) may happen again, driven by the strong growth in LPG demand among vehicle owners.
''This is due mainly to the government failing to proceed with the partial floating of LPG prices,'' he said.
He said the government's urgent task would be to raise LPG retail prices gradually to stop the growth of demand among motorists.
LPG imports next year would rise to one million tonnes from 300,000 tonnes this year because the government allows LPG to be sold at unrealistically low prices, he said.
The number of LPG-fuelled vehicles is forecast to rise to 1.2 million from 700,000 at present. A year ago the figure was below 100,000.
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