Bid to ease LPG price fears

 It also decided to expand the base of those who will possibly be affected to cover those using not more than 90 units of electricity per month – totalling 8.3 million households – up from the original 50 units per month, totalling 3.67 million households.
The committee divided the affected people into two groups – low-income earners and street vendors – said Energy Minister Pongsak Ruktapongpisal, who chaired the committee.
The committee approved the use of Bt50 million of Oil Fund money to hire an expert to develop a database of street vendors, who number about 500,000. The task is expected to take about 60 days.
“We need information on those people who will be affected before we go ahead and announce the price float in the household sector. Those using not more than 90 units of electricity will be subsidised at a rate of 6 kilograms per household per month via a system of planned power credit cards, while street vendors will receive help not exceeding 150kg per month per shop. The subsidy will be from the Oil Fund,” Pongsak said.
The committee also appointed the sub-panel, which will be chaired by the Energy Ministry’s permanent secretary, to seek ways to ease the burden on the public from the LPG price float.
Pongsak affirmed that the price float would not hit low-income earners, as the government would seek measures to help them. But the LPG price must be raised to be in line with the global price, he said.
The Foundation for Consumers yesterday wrote to Prime Minister Yingluck Shinawatra to ask the government to revoke the plan to float the LPG price. The letter was signed by the foundation’s secretary, Saree Ongsomwang.
The foundation made many requests of the prime minister, including the revocation of the price-float policy for the household and transport sectors. The government should stop funnelling Oil Fund money to subsidise the LPG price for the petrochemical production sector, it said, as this does not match the objective of the Oil Fund, which was established to keep energy prices stable.
Instead of raising the LPG price for the household and transport sectors, the petrochemical business should also be instructed to contribute to the Oil Fund to the tune of at least Bt7 per kilogram. The sector consumes 2,400kg of LPG per year. The contribution from the petrochemical sector could be used to reduce the losses of the Oil Fund within one year, the letter said.