Bangchak seeks price hike
Bangchak Petroleum will ask the government to raise the retail prices of its fuels by Bt0.8-Bt1 per litre after its production process achieved the Euro 4 standard for pollutant emissions.
The company will propose hikes of 80 satang in the retail price for diesel and Bt1 for gasohol and petrol to reflect the company’s higher production costs under the government’s requirement starting early next year.
Manufacturing higher-quality fuels will allow the company to export a greater volume of naphtha, petrol and diesel.
Bangchak yesterday formally launched its high-grade fuels after investing Bt14 billion to upgrade its refinery to the Euro 4 standard.
President Anusorn Seangnimnuan said Euro 4 fuels would be distributed nationwide this month, ahead of the implementation of the government’s health and environmental-safety requirements early in the new year.
With the Euro 4 standard, sulphur will be reduced by 10 times and benzene, which can enhance cancer, by 2.5 times.
The company has prepared a new export plan to protect its return on investment when the government discontinues sales of 91octane petrol next October. The end to 91octane sales will leave the company with an oversupply of that grade of petrol, which will have to be disposed of overseas. However, the company will be able to absorb the cost, as neighbouring countries have not announced implementation of the Euro 4 standard.
It plans to stop distributing 91octane petrol in Thailand in August.
The company targets its diesel exports to reach between 12 million and 20 million litres per month and petrol exports to reach 50 million litres per month next year.
Refinery operations are scheduled to be suspended in May as part of the plan to add catalysts to upgrade crude-oil quality. and suspend facilitate refining.
The move will enable the company to make a variety of petroleum products. For instance, it will import more crude oil from Russia to make more green products with lower sulphur.
Its refining ratio will also be changed to concentrate on diesel, at 50 per cent. Jet fuel will be 15 per cent, petrol and gasohol 20 per cent and liquid petroleum gas 3,000 tonnes per month.
Its average refining capacity next year will slip to 92,000 barrels per day from 100,000 barrels currently because of the temporary halt in its refining operations.
Its earnings before interest, taxes, depreciation and amortisation are expected to reach US$7 billion (Bt219 billion) next year based on a refining margin of $7 per barrel, up from $6 this year.
