Gas price freeze for 3 months

Gas price freeze for 3 months

The National Energy Policy Council (NEPC) agreed to freeze the prices of compressed natural gas (CNG) and liquefied petroleum gas (LPG) for the transport sector for three months, from May 16 to Aug 15, Deputy Prime Minister Kittiratt Na-Ranong said on Monday.

Mr Kittiratt, who oversees the Finance Ministry, chaired the NEPC meeting this morning to discuss ways to combat the rising cost of living.

The meeting agreed to cancel plans to raise the prices of CNG and LPG each month. 

In January, the government approved raising the CNG price by 0.50 baht a kilogramme and the LPG price by 0.75 baht/kg on a monthly basis from January to December 2012.

The minister said the CNG price will remain at 10.50 baht/kg and the LPG price at 21.13 baht/kg until Aug 15. 

From Aug 16 onwards, the Energy Planning and Policy Office (EPPO) will consider changing their prices in accordance with the actual costs. Chulalongkorn University's Energy Research Institute will study the CNG cost structure.

Mr Kittiratt said the meeting also revoked plans to collect monthly levies on petrol and gasohol by the state Oil Fund at one baht a litre, and diesel at 0.60 baht a litre.

The EPPO will determine the appropriate Oil Fund levies by considering global fuel prices, domestic inflation, alternative energy promotion and the Oil Fund's status, he said.

The levy on diesel will be reduced if its retail price rises and causes higher transportation costs and fares, he said.

The EPPO will adjust the levies on petrol and gasohol to levels that will encourage more motorists to use alternative fuels, he added.

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