Truck operators have called on Prime Minister Prayut Chan-o-cha to reduce the price of compressed natural gas (CNG) to help them survive in the competitive business.
They say current prices mean 200,000 operators are at risk of shutting down.
A group of small operators sent a letter to Gen Prayut asking the premier to consider a price cut as a large number of small- and medium-sized operators were finding it hard to compete with transnational transport companies.
The letter said they were struggling with the high cost of CNG and the sluggish economy, Land Transportation Federation of Thailand chairman Yu Jienyoenyongpong said.
The pricing measure would be an immediate, short-term solution for domestic operators vulnerable to competition from Chinese, European and American rivals who have “more money and better technologies”, he said.
The federation suggested the government cut the CNG price from 13 baht to 10.5 baht a kilogramme so that operators bear less fuel costs at a time when the goods transport business is slowing down.
The price of CNG, known locally as natural gas for vehicles (NGV), has gradually risen since October last year after the government decided to end its subsidies for CNG and cooking gas, which had been in place for 10 years.
The move is part of the state energy reform policy aimed to bring the gas prices closer to their actual costs.
But the policy goes against the global trend of decreasing energy prices which can in turn cause a “psychological impact” on consumer spending, Mr Yu said.
How to set the appropriate CNG prices and make sure there are enough filling stations will be the “homework for the new cabinet members”, he said.
The Land Transportation Federation last year agreed to higher CNG prices, given that state-owned major CNG supplier, PTT Plc, plans to build more filling stations across the country.