Energy imports hit record

According to the Energy Business Department, the value of energy imports outpaced the previous record of Bt1.024 trillion registered in 2008 when oil prices spiked above US$100 per barrel for the first time in history.
In 2011, crude oil averaged $106.28 per barrel, refined petrol $117.56 and diesel $124.68. The averages last year were $78.03, $86.23 and $89.48 respectively.
“Aside from higher prices, Thailand’s energy consumption increased from last year, except for petrol consumption, which showed a 1.6-per-cent drop to 20 million litres a day due to the severe flooding,” said Viraphol Jirapraditkul, director-general of the department.
Average diesel consumption increased 3.1 per cent year on year to 51.1 million litres a day, because of the price subsidy as well as higher demand during the floods, which required a large number of diesel-powered water pumps as well as rescue and relief efforts.
Higher oil prices also pushed up demand for liquefied petroleum gas (LPG) by 18.9 per cent to 543,000 tonnes a month. Higher demand was witnessed in all sectors, except the manufacturing sector, as the price of LPG for industrial use was raised in July. Consumption of natural gas for vehicles (NGV) also rose from 5 million kilograms per day to 6.4 million.
Viraphol referred to Goldman Sachs’ forecast that oil prices would next year average $102.76 per barrel. Though demand from emerging markets will remain brisk, denting the demand is the euro-zone crisis. Meanwhile, political violence in oil-producing countries will also keep oil prices at a high level.
“Thailand’s oil consumption will move in line with economic growth. Based on the forecast of 4.5-5.5 per cent, petrol consumption should rise 1-2 per cent, and diesel 3-4 per cent, year on year,” he said.
The department expects growth in LPG and NGV consumption to slow slightly if prices are higher next year. LPG for household use will see continued growth, however, as prices are maintained. By sector, households consumed 221,000 tonnes of LPG per month, the industrial sector 60,000 tonnes, transport 76,000 tonnes and petrochemicals 186,000. Meanwhile, NGV consumption could rise thanks to LPG price adjustments as well as the expansion of the network of NGV stations from 460 to 530.
Viraphol said that this week, the Energy Policy Administration Committee would consider how the improvement of fuel quality to the Euro 4 standard would raise petrol prices next year. Initially, it is estimated to push up production costs by 40-50 satang per litre.
Also next year, the sale of 91-octane petrol will be banned in October, which should boost ethanol demand from 700,000 litres a day to 2 million. Meanwhile, biodiesel content of conventional diesel should be increased to 5 per cent, in line with higher biodiesel output. In 2011, output rose to 1.33 million litres a day from 1.22 million litres last year.