Gas prices to be raised, as subsidy cost grows
Starting from March 16, vehicle owners would need to face an increase in the prices of LPG and NGV.
The Energy Policy Administrative Committee on Thursday resolved the increases, which would raise the LPG price by 75 satang per kg to Bt20.33. The NGV price would be raised by 50 satang per kg, to Bt10.
Deputy Energy Permanent Secretary Kurujit Nakornthap added that the committee also approved an increase in the Oil Fund's loan ceiling from Bt10 billion to Bt30 billion, to cope with the increasing global prices of LPG.
He noted that LPG now costs US$1,200 per tonne and this demands a higher amount of funds to cover the gap of actual cost and retail price.
At the current price, LPG subsidies cost the Oil Fund Bt4.3 billion.
The committee also approved the project to review the NGV cost. With Bt1.5 million funding from the Oil Fund, the study will focus on the pricing criteria to ensure that the price is fair and reflects the actual production cost. This is to win acceptance from all parties, amid criticisms that PTT - the sole distributor of the gas - sets the price as it is pleased.
The committee also instructed PTT to issue energy cards to provincial transport drivers, aside from those in Greater Bangkok. It views that the provincial drivers are subjected to fare freezes, against a higher fuel cost.
The cards offer drivers a discount on NGV purchases.
