The cooking gas price will rise by 50 satang a kilogramme a month for 13 consecutive months starting this September until it reaches 24.82 baht in October 2014, says the Energy Ministry.
Minister Pongsak Raktapongpaisal said the ministry decided on a gradual raise in the liquefied petroleum gas (LPG) price for households by 37% or 6.69 baht per kg from 18.13 baht, at which it has been capped since 2007.
LPG prices have already increased in the petrochemical and industrial sectors.
"Cooking gas prices will be raised to reflect the actual cost at gas separation plants," he said.
LPG in the transport sector, which has been capped at 21.38 baht per kg, will also gradually rise starting next February by 50 satang a month until reaching 24.82 baht.
The government will implement a direct subsidy programme for 7.5 million low-income households and food vendors in tandem with the price increases. Low-income households are defined as those consuming 90 kilowatt-hours of electricity a month.
Targeted households will be able to buy 6 kg of LPG at 18.13 baht per kg every month, while food vendors will receive 150 kg each.
Food vendors must register with the Energy and Commerce ministries in their province or contact a call centre at 02-140-7000 from 8.30am to 6pm.
Those who enrol in the programme will receive a PIN code to obtain LPG at the capped prices at shops.
The Energy Ministry estimates 30,000 to 45,000 tonnes of LPG will qualify for the direct subsidy each month.
Once the LPG price reaches 24.82 baht, the state-owned Oil Fund's subsidy expense will be cut from 3 billion baht to 200 million per month.
Thailand consumes 20.7 million tonnes of LPG a day, with households accounting for 34.3% of the total. Some 36.7% is used by the petrochemical sector, with 21% and 8% consumed in the transport and industrial sectors, respectively.
In October 2007, the cooking gas price rose to 18.13 baht from 16.81 baht.