SET-listed PTT Oil and Retail Business (OR) is positive about the Energy Ministry's plan to better regulate oil trade and prices to deal with crude oil price fluctuations, despite growing concerns over the impact on its oil retail.
The company allayed the concerns of stock investors, following an interview last month by caretaker Energy Minister Pirapan Salirathavibhaga who said the energy authorities will be given more power to regulate domestic oil and cooking gas prices through taxes and subsidies under a new law.
Under the bill, a new commission will be set up to determine appropriate tax rates that will be imposed on oil.
This duty is currently carried out by the Finance Ministry, but once the new law is in place, only financial officials will be responsible for collecting the tax.
The bill will result in the Oil Fuel Fund Office being dissolved, paving the way for the new commission to manage the fund, which is facing a huge loss caused by oil and gas price subsidies.
Reportedly, energy authorities also want to regulate the ex-refinery and retail prices of oil.
OR does not think the new law will become a hindrance to profit making among oil retailers, said Wilaiwan Kanjanakanti, OR's senior executive vice-president for finance.
She believes the officials will not impose "overly stringent" price controls that will affect the marketing margin, which refers to revenue made by oil retailers after deducting costs.
Energy officials will know what to do with the new law as they received information on the oil business from the company, said Ms Wilaiwan.
"We have provided all the information they needed during the law-making process," she said.
In a separate matter, Ms Wilaiwan clarified the decline in OR's market share in the domestic oil retail market from 40% to 39% as of the end of June. She attributed the reduction to lowering state diesel price subsidies to 33 baht per litre and to the spread of "fake news" accusing a PTT petrol station in Saraburi of unfair oil sales practices.