Cheap LPG hope for needy Thais

Cheap LPG hope for needy Thais

The Energy Ministry plans to relaunch a programme to provide cheap cooking gas to poor people and those who run small food shops, aiming to offset the impact of rising LPG prices.

Prices for liquefied petroleum gas were recently floated to bring them in line with global market rates as part of a broader restructuring by the government.

LPG subsidies for the targeted groups will probably begin in February, said deputy permanent secretary Twarath Sutabutr.

The retail cooking gas price stands at 24.16 baht a kilogramme.

The price was raised by 50 satang a kilogramme each month from September 2013 to June 2014 before being floated last month.

But those classified as belonging to lower-income groups could pay 18.13 baht, a 33% discount, under a ministry programme to help absorb rising living costs.

The ministry originally launched the scheme in 2012, but few people bothered to register.

"The LPG price was not very high over the past two years because the price was raised gradually," Mr Twarath said. "So the price gap was not enough to interest them in the programme."

Lower-income groups eligible to buy LPG at subsidised prices include households that use less than 90 kilowatt-hours of electricity and food vendors whose area is less than 50 square metres.

Under the scheme, household gas users can buy 18 kilogrammes of cheap LPG in each quarter and food vendors can buy 150 kilogrammes a month.

Mr Twarath said the government was forced to stop cross-subsidising LPG users out of fairness to other fuel consumers.

The cross-subsidy reached 20 billion baht last year, up from 15 billion in 2013. The number of LPG vehicles hit 1.3 million, up from 80,000 in 2012.

Those who want the LPG subsidy can apply at www.lpg4u.net or register at the Energy Ministry service centre.

All applicants will receive an SMS message after the registration process is complete.

For more information, interested parties can phone the ministry on 02-140-7000 during office hours.

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