Shell, dealers to spend Bt1 bn on 10 new petrol stations

Under the plan, about 10 new stations will be set up. Of these, six will be paid for via direct investment from the company, and dealers will invest in the remainder. The stations are expected to open in the third quarter of the year.
Last year, the company’s dealers opened only seven new petrol stations.
Pisawan Achanapornkul, president of Shell Thailand, said the company would use part of the investment budget to improve the stations’ brand image, and on boosting its lubricant and asphalt businesses to serve rising demand.
“The expansion will allow the company to reap a bigger share of the fuel market and become the second-biggest trader, as our products do not cover as many types of fuel as our competitors,” Pisawan said.
Shell is also willing to follow the government policy to stop distributing 91-octane petrol. It stopped distributing this type of fuel once before, but resumed trading after the government delayed the policy.
She added that the cancellation of 91-octane had prompted oil companies to adjust their operations to produce less of it. These companies have to export at a lower price than they receive for distribution to the domestic market. Moreover, they face higher costs due to the need to import base fuels to produce gasohol.
Pisawan said global oil demand would increase by an average of 5 per cent this year because of the effects of global warming.