LPG price fully floated

LPG prices have finally become one and floated to reflect world prices after regulators approved on Tuesday the new price of 24.16 baht a kilogramme, effective on Wednesday.

From tomorrow, the price will be same for the three groups of users — motorists, households and factories. Up until Wednesday, the prices in the transport sector and for households were 23.13 baht a kg while factories already paid 24.16 baht.

Energy Minister Narongchai Akrasanee said after the Energy Policy Administration Committee meeting on Tuesday that now was the right time to restructure energy prices to be fair to all user groups.

The meeting also raised NGV price for motorists by one baht a kg to 12.50 baht while the price for public transport moved up to 9.50 baht.

On the other hand, petrol and gasohol prices were cut by 0.50 baht a litre while their levies to the Oil Fund increased by 0.50 baht. Diesel price was also slashed by 0.40 baht a litre and its levy to the Oil Fund increased by 0.50 baht.

The Oil Fund serves as a cushion against world price volatility, with a contribution rate for each type of fuel set by the committee. The proceeds are used to subsidise certain types of fuels when their world prices are high in order to reduce the impact on local users.

The incumbent government wants to scrap the fund as it sees price subsidies by previous governments as a populist policy which gives people no incentive to conserve energy.

Brent, a benchmark for more than half the world's crude, has slid about 36% this year. The United States is pumping oil at the fastest rate in three decades even as global demand growth slows, contributing to the bear market in the fuel. 

The new prices to take effect on Wednesday are: