Lacklustre launch of energy credit card

 The credit card, to be issued to public vehicle drivers ahead of NGV price increases, drew little supports from the drivers who are fearful that the subsidy would not completely cover the higher cost.  
 The ministry aims to raise the NGV price in January, to reflect the actual cost. PTT, the sole provider of the gas, claims that it has shouldered tens of billion each year as the gas is marketed below actual cost. To win more supports, the ministry on Dec 14 agreed to raise the eligible monthly purchase value from Bt6,000 to Bt9,000. With the cards, each driver will be given Bt3,000 credit per month and a discount of Bt0.50-Bt2 per kg but their monthly purchase must not exceed Bt9,000.
 According to Energy Minister Pichai Naripthaphan, 100 taxi, 35 public vans and 15 three-wheel taxis have joined the scheme. 
 From now until Dec 24, all interested can apply to join the scheme at Impact Muang Thong Thani Hall 9.
 Following the launch today, the drivers can use the credits immediately while the discounts will be available from Jan 16 onwards.

According to DBS Vickers Securities (Thailand), PTT is currently subsidising NGV of Bt10 billion per year, representing 10 per cent of its 2011 earnings. It is in the plan that the NGV retail price would be raised from Bt8.5 per kg, to Bt12.5 per kg for public transport use and Bt14.5 per kg for own use by Dec 2012 (or by Bt0.5 per kg per month). The price increase, if going as planned, will reduce PTT’s burden by an estimated Bt7 billion per annum from 2013 onwards based on current demand load.