ENERGY

The retail price of compressed natural gas (CNG) is expected at 13.28 baht per kilogramme when it is floated in February next year.

Pongsak: PTT needs to invest more

The price of liquefied petroleum gas (LPG) will also be allowed to move freely in line with world markets at the same time.

The Energy Ministry last year planned to raise the price of CNG, also known locally as NGV, from 8.50 baht per kg to 14.50 baht. However, the plan has been delayed amid calls for a review by transport operators

After a few incremental increases, the CNG is now at 10.50 baht.

The Energy Research Institute (ERI) at Chulalongkorn University has been instructed to study the appropriate price for the gas.

Citing the ERI's study, Energy Minister Pongsak Raktapongpaisarn said CNG should be priced in a range of 10.97 baht to 12.65 baht per kg excluding the value-added tax.

When the VAT is included, CNG should be priced at 13.28 baht per kg, he said.

The minister will discuss next week with the national oil conglomerate PTT Plc to accelerate the expansion of CNG refuelling stations because transport operators have complained about the limited number of the stations and their coverage.

"If PTT wants to make some profit from selling CNG, it should facilitate gas users because there are only a few stations and the locations are not convenient," said Mr Pongsak.

This year, demand of CNG in Thailand is expected to grow 26% to 8,550 tonnes per day from 6,767 tonne in 2011.

The subsidised price of CNG has prompted a number of transport operators to shift from diesel over the past few years.

Currently, PTT operates 479 retail CNG stations, to be increased to 502 by the end of the year.