No rapid economic gain from cheap oil

No rapid economic gain from cheap oil

Lower oil prices will not give an immediate boost to the Thai economy, but it should start to noticeably recover early next year, Issara Vongkusolkit, chairman of the Thai Chamber of Commerce (TCC), said on Tuesday.

Issara Vongkusolkit

Athough the global oil price had fallen from US$100 to US$60 per barrel, it would not have a substantial impact on the Thai economy in the last quarter this year,  because people's incomes had not increased, he said.

He cited low prices for farm products, including rice and natural rubber.

Mr Issara said the national economy should begin to clearly pick up early next year, in the second quarter in particular, as government measures to support farm product prices should take effect, the government would be spending increasingly and people's purchasing power would rise due to lower energy prices at that time.

He expected domestic petrol and diesel users to save a total of 146 billion baht in a year if the present oil price remains consistent.

Mr Issara said lower fuel costs would reduce transport  costs by 3-4%, which would be reflected in the retail prices of some products.

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