The Transport Co is asking the government to end PTT Plc's monopoly on the sale of fuel to state enterprises so state enterprises can buy cheaper fuel from other suppliers.
The state-run bus agency hopes this will help it save on fuel costs by 60 million baht annually.
The chairman of the board of Transport Co, Anusorn Saengnimnuan, said he will raise the matter with Deputy Transport Minister Arkhom Termpittayapaisith. The state-run bus agency would like to buy fuel freely through auctions.
He expects the move will encourage price competition among suppliers. The agency could end up with fuel which is cheaper by at least one baht per litre, which will help save its fuel costs by 60 million baht a year, he said.
Mr Anusorn said he will ask the government to review the cabinet resolution in 1999 which requires all state enterprises that want to buy at least 10,000 litres of fuel to buy it solely from PTT Plc — the national oil and gas conglomerate.
Rescinding the cabinet resolution will end PTT's monopoly on the sale of fuel to state enterprises so they will be able to buy fuel freely from other suppliers, he said.
Since PTT has been partially privatised and gains massive profits annually, there is no need for the government to subsidise PTT as in the past, Mr Anusorn said.
He said the fuel which Transport Co buys from PTT is more expensive than pump prices by one baht per litre. He said if the government approves the proposal, the financial standing of several state enterprises will improve significantly as their fuel costs will ease.
Mr Anusorn said he had asked Transport Co president Wuthichart Kalyanamitra to meet PTT to ask it to lower fuel prices to the same rate of pump prices, although no conclusion has yet been reached.
Transport Minister Prajin Juntong said solving this issue requires effort from all agencies and he needs to discuss details with them first.