Kittiratt non-committal on price hike
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Promising the eventual floatation of liquefied petroleum gas (LPG), Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong is non-committal on the increase in cooking gas price scheduled for August 16, due to inflation concerns.
Kittiratt said Monday that the government would definitely float the cooking gas price prior to the activation of the Asean Economic Community in 2015, as national subsidies for some groups of consumers should be ended.
Yet, he said that another meeting would take place before August 16, to discuss potential impacts from the increase on inflation. Then, a decision will be made.
Thailand’s inflation in the first half of this year was only 2.95 per cent. The Commerce Ministry targets 3.3-3.8 per cent inflation this year. If inflation is his concern, it appears that the low inflation is paving way for an increase in LPG price, at least for the transportation use.
Saying that LPG price for transport and household use would be raised, following an increase in LPG price for industrial use, he said that the timing would be decided later.
It had earlier been expected that the price of LPG for transport and household use would be raised on August 16.
If inflation remains at a high level, the price hike would take place, Kittiratt said. But if inflation is within target, the price would be gradually raised in such a way that the general public would not be affected, he added.
Delays in such increases have taken place during both the Abhisit and Yingluck administrations. At present, in the transport sector, a large number of vehicles are using the cooking gas in their tanks, as it is cheaper than NGV and much cheaper than petrol.
