Fuel prices on hold as govt tackles living costs

Prime Minister Yingluck Shinawatra ordered the Cabinet to find solutions to the problem. 

The Energy Policy Administration Committee (EPAC) responded to the order by delaying price adjustments of all fuels to maintain retail prices. 

The Commerce Ministry will consider ways of bringing down prices of goods and providing more information to consumers; the Agriculture Ministry will closely monitor farm-goods production and distribution to sales points; and the Transport Ministry will try to keep transport costs stable. 

In addition, the government has agreed to the National Economic and Social Development Board’s suggestion to delay fare adjustments on the MRT subway system, which are due to rise on July 3. However, the MRT will hold talks with Bangkok Metro Co on the issue. 

“The fare should not rise by so much as Bt1,” Yingluck said. 

Energy Minister Arak Chonlatanon said after the meeting of EPAC that the committee agreed to maintain contributions to energy funds, including those for petrol, gasohol and diesel fuel. The practice will alleviate inflation and the burden on consumers, the minister said.

So far, the contributions are Bt4 per litre for 95- and 91-octane petrol; Bt2.2 per litre for gasohol 95; and 60 satang per litre for gasohol 91 and diesel. 

In addition, the EPAC ordered the Energy Policy and Planning Office to propose that the National Energy Policy Council consider maintaining the retail price of natural gas for vehicles (NGV) at Bt10.50 per litre, as well as maintaining contributions to the energy fund for liquefied petroleum gas (LPG) at Bt2.8 per litre for three months from May 16. 

The proposal would call on the council to wait until a review of NGV costs is finished.

In fact, the EPAC has to increase contributions of 91- and 95-octane petrol as well as diesel by another Bt1 per litre each.

The government is supposed to raise the retail price of LPG for the transport sector by 75 satang to Bt21.83 per kilogram and of NGV by 50 satang to Bt10.50 per kilo to reduce subsidies from the Oil Fund on May 16. However, the policy has been suspended. 

Commerce Minister Boonsong Teriyaphirom responded to the prime minister’s order by announcing that a meeting with manufacturers of consumer goods and food would be held soon. The ministry wants them to maintain prices for two to four months. After that period, it will allow them to increase retail prices in line with energy costs. 

The ministry’s Internal Trade Department is also considering putting one-dish food items on the price-control list, which currently covers 42 products and services.