Energy Minister Pirapan Salirathavibhaga was in the spotlight this year as he pushed ahead with the uphill task of dissolving the Oil Fuel Fund Office (Offo) and developed a costly strategic petroleum reserve to better control oil and liquefied petroleum gas (LPG) prices for Thailand over the long term.
His ministry drafted a new law to set up a commission to replace Offo in managing the Oil Fuel Fund, which is used as a cushion against surges in global petroleum prices through domestic oil and cooking gas price subsidy programmes.
Taxes imposed on the fuels keep the fund financially healthy, but the tax rates can be lowered when crude oil prices become expensive.
The bill needs approval from parliament.
Mr Pirapan believes the commission can better regulate the retail prices of oil and cooking gas.
Under the bill, the commission will determine appropriate tax rates in place of the Finance Ministry, whose role will be limited to tax collection. The panel will meet to discuss oil and LPG prices and will make price adjustments on a monthly basis in order to give businesses and households enough time to better plan their fuel usage.
Another difficult task for Mr Pirapan is a controversial idea to set up a strategic petroleum reserve (SPR) in Thailand.
Like the commission, the SPR is aimed at relieving the impact of global oil price fluctuations and ensuring the country has sufficient oil supplies in the event of unforeseen delivery disruptions by major suppliers, especially those in the Middle East.
Mr Pirapan wants Thailand to increase its oil reserves, both crude and refined, to cover 90 days of use, up from the current level of 50 days.
However, it difficult for the government and oil companies to purchase a huge amount of oil and invest in oil storage facilities because of budget constraints, according to an oil refinery company representative.
