LPG, NGV prices go up today

Public-transport vehicles will enjoy a subsidy and continue to pay the old NGV price of Bt8.50 per kilogram.

Areepong Bhoocha-oom, permanent secretary for the Energy Ministry, said the price increases were in line with a decision by the military’s ruling National Council for Peace and Order (NCPO) on August 26.

The LPG price rises by 62 satang from Bt21.38 per kilo to Bt22.00. The rise is mainly from an increase in the LPG contribution to the Oil Fund from Bt3.0374 per kilogram to Bt3.6168.

To ease the burden on PTT, the NGV price increases by Bt1 from Bt10.50 per kilogram to Bt11.50.

Public-transport vehicles including taxis, tuk-tuks, public vans and buses will be subsidised through the energy-credit-card project, keeping their NGV price at Bt8.50 per kilo. PTT will shoulder this burden.

"The LPG price is raised to prevent incentives for misuse of LPG," Areepong said, adding that the National Energy Policy Committee would consider further increases in the future.

At its recent meeting, the Energy Policy Administration Committee also raised the diesel contribution to the Oil Fund by 40 satang from Bt1.70 per litre to Bt2.10, given its high marketing margin, Areepong said. The rise will not affect the diesel retail price.

After the rise in the diesel contribution, the Oil Fund’s monthly take will rise from Bt2.84 billion per month to Bt3.48 billion, and it is expected to see its net position at zero by November. As of September, the fund’s net position was in negative territory at Bt4.196 billion.

Charcrie Buranakanonda, PTT’s senior executive vice president for the gas business unit, said that with the rise in the NGV price, PTT would earn Bt570 million more income this year.

"From 2003 to August 2014, PTT has suffered an accumulated loss of around Bt100 billion for NGV. This rise is to lessen the loss burden only," he said.

The company’s NGV price subsidy for public vehicles will be about Bt133 million per month.