Retailers urged to hold down petrol, gasohol prices

To obtain a positive Oil Fund balance and to support the planned energy-price restructuring process, the EPPO resolved to raise the diesel-fuel contribution to the fund by Bt0.70 a litre, from Bt3 per litre to Bt3.70, effective today. This should result in improved liquidity of the Oil Fund of about Bt1.09 billion a month, from the current monthly income of between Bt5.12 billion and Bt6.22 billion. 

The retail price of diesel will remain unchanged at Bt29.39 a litre, Narongchai said. 

 

Oil Fund

The status of the Oil Fund as of Sunday was a negative balance of Bt1.98 billion. With the new contribution rate, the Oil Fund balance is expected to show a positive figure within 10 days. 

Contributions to the Oil Fund help alleviate oil-price volatility and provide a mechanism to support the agricultural sector in terms of alternative energy, such as ethanol and biodiesel, Narongchai said. 

Meanwhile, global oil prices have continued to decline since the last EPPO meeting. The Dubai crude-oil market closed at US$85.05 per barrel as of Friday, 95-octane petrol at $99.65 a barrel and diesel at $97.62. 

Data from the first eight months of this year show that imports still account for 85 per cent of Thailand ’s total sourcing of crude oil. Hence the Energy Ministry is urging consumers to use oil efficiently as they can help lessen this burden on the country. 

Furthermore, the EPPO meeting resolved to allow retailers (in accordance to Article 7 of the Oil Trade Act of 2000) that sell liquefied petroleum gas to the transport sector to contribute a higher rate to the Oil Fund, at Bt4.2056 per kilogram. Thus the retail price of LPG for the transport sector will rise by Bt0.63 from Bt22 per kilo to Bt22.63, which equals the LPG price for the household sector, effective today. This is to curb illegal sales of LPG from one sector to another, Narongchai said.