Oil price increase hurting manufacturers, poll reveals

Oil price increase hurting manufacturers, poll reveals

The global oil price surge is affecting the industrial sector as large numbers of factory operators have already borne the brunt, according to a recent poll conducted by the Federation of Thai Industries (FTI).

Up to 49.3% of 150 executives in 45 industries told the pollster the manufacturing sector encountered moderate impact from the increasing oil prices, said Wirat Uanarumit, vice-chairman of the FTI.

Some 38% said the sector bore a "considerable impact" while only 12% said the impact was small.

According to the findings, the respondents said the most noticeable impact was seen in the rise in the prices of goods and services (88%), followed by more expenses in transportation and logistics (84%) and a higher inflation rate, which will dampen people's purchasing power (34%).

A lack of raw materials exported by China due to the energy shortage in the country came fourth with 25.3%.

The respondents were also asked to suggest measures which the state could implement to relieve the impact of the oil price surge, said Mr Wirat.

They want authorities to put a cap on electricity prices until the end of this year (66%), followed by an adjustment of the energy price structure for temporary use lasting 3-6 months (56.7%), and use of money from the oil fund or the state budget to curb energy prices (54%).

A controversial proposal to reduce excise and value-added taxes on oil and gas came fourth with 53.3%, according to the findings.

The executives also suggested long-term plans to relieve the impact of energy price fluctuations in the future.

They want the state to promote renewable energy to reduce dependence on fossil fuel (74.7%), followed by campaigns for saving energy, more use of technology to increase production efficiency (72.7%), and fair energy prices (64%).

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