Narongchai rules out cut in energy prices
Play
ENERGY MINISTER Narongchai Akrasanee yesterday dismissed calls for the government to cut energy prices to help fire up the flagging economy.
At a seminar held by state-controlled energy conglomerate PTT, Narongchai made it clear he would not return to a populist policy to subsidise oil prices since Thailand is an energy-deficit country.
“In summary, we can’t be |lavishing on gasoline and diesel oil prices. For NGV (natural |gas for vehicles), we can only |help to delay the price rises,” he said.
The Transport Ministry had asked him to delay his plan to increase NGV prices to better reflect their actual costs.
For liquefied petroleum gas, he will only allow a small price increase, if necessary, and will use the state-managed Oil Fund to help stabilise the LPG price if its cost surges.
There were growing calls for the government to use its energy price policy to help stimulate the economy, but the Energy Ministry would not bring back subsidies.
It would assist only by helping to push ahead investment in energy projects and ensuring a stable supply of energy.
“With regard to using a price policy to [help consumers to] buy energy cheaply, we can’t give it more than what we’re offering now. [I] won’t make a return to the populist policy,” he said.
The private sector has submitted many renewable power projects, but “congestion” on the electricity grid has slowed down these investments.
The ministry is working with the three state electricity utilities to help solve the transmission problem with the priority given to waste-to-energy projects.
The ministry will conclude this month which solar farm projects will be allowed to go ahead.
About 2 gigawatts of solar power projects are expected to be invested this year, so Bt120 billion will be flowing into the economy.
The government should also push ahead with its plan to open a new bidding round for petroleum exploration and production, he added.
