The government has agreed to postpone a planned hike of cooking gas prices for household use for one month.
The price of LPG will be increased each month starting in July. PATTARAPONG CHATPATTARASILL
Energy Minister Pongsak Raktapongpaisal yesterday said the increase will now take place in July.
The government had planned to increase the price by 50 satang per kilogramme per month, raising consumers' concerns about a possible increase in product and food prices.
Mr Pongsak has asserted that despite the latest delay, the floating of liquefied petroleum gas (LPG) prices is a must.
Earlier this year, the Energy Policy and Planning Office said the LPG price would be gradually lifted by 50 satang a month for 12 straight months.
Retail LPG prices have been fixed at 18.13 baht per kg for households and 21.38 baht per kg in transport for decades, leaving them far below global prices.
Mr Pongsak said the government pledged to come up with measures to cushion the impact on low-income earners from the increase in cooking gas prices.
The hike will not affect 7.6 million families comprising 15 million people who are now entitled to free power bills, he insisted.
Mr Pongsak said the government also plans to continue the cooking gas subsidy to 500,000 street vendors.
About 200,000 vendors have already registered with the government, he said.
In a related development, the cabinet yesterday also approved an extension for another month to June for a reduction of the excise tax for diesel.
Surasak Nittiwat, chairman of the Thai Auto Gas Business Association, said higher prices of LPG and compressed natural gas are unlikely to affect their sales volume.