The pump price of liquefied petroleum gas (LPG) for use by vehicles is likely to increase this weekend in line with the government's policy to float energy prices, Energy Minister Arak Chonlatanon said on Tuesday.
The Energy Policy Administration Committee will meet on Friday to consider the newf retail price. The regulator, meanwhile, agreed on Tuesday to cut the OIl Fund levy on all types of fuel by 0.20 baht a litre to maintain domestic retail prices at current levels as global oil prices have rose again.
Mr Arak said the retail price of LPG had been capped at 18.13 baht per kilogramme for a long time for household cooking use and for the transport sector.
Last month, the price of LPG for vehicles rose by three baht to 21.38 baht. The rate in the industrial sector was floated last year and is at 30.13 baht.
The household sector consumes 40% of the total LPG consumption, with 12% in transport, 13% in industrial plants and the other 35% is used for feedstock in the petrochemical industry.
The reference price of LPG in the global market is quoted at US$1,000 per tonne for September, up from $775 last month. In Thailand, ex-refinery price is capped at $333 per tonne.
Since 2008, the state Oil Fund has subsidised the LPG price at a cost of about 100 billion baht with the money allocated from other fuels' contributions to the fund. Fuel price subsidies have caused the fund an accumulated accumulated loss of 17.10 billion baht.