Eppo set to maintain the price of industrial LPG
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The Energy Policy and Planning Office (Eppo) is expected to maintain the price of liquefied petroleum gas for the industrial sector at Bt30.13 per kilogram despite the possible escalation in global prices, an Energy Ministry source said.
The global price is expected to reach US$1,100 per tonne soon, up from $800 in November.
The source said that if LPG prices for the industrial sector were not held down, they could surge to Bt32 per kilogram. This could increase to about Bt40 per kilogram once related taxes and retailers’ marketing fees were included, creating a huge financial burden for the industrial sector.
The price of LPG on the global market is being driven up by the onset of winter in Western countries, where gas is used for heating. Japan is also switching from nuclear power to gas to generate electricity, pushing the price up even further.
The rising price of oil on the global market has also had an effect on LPG. As a result, Thailand is paying up to Bt2 billion a month to import the gas.
The price of household cooking gas went up by 50 satang to Bt20.13 per kilogram yesterday, one of the incremental increases approved recently by the National Energy Policy Council chaired by Prime Minister Yingluck Shinawatra.
The first rise in the price of cooking gas took place in September, with successive increases of 50 satang per kilogram per month until the price reaches Bt24.82 per kilogram. The ministry has launched measures to ease the impact of the price hike on low-income families by allowing them to pay a fixed rate of Bt18.13 per kilogram.
