Fuel prices maintained on intervention
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Thanks to the government's intervention, fuel prices in Thailand would stay unchanged though global prices hit 2015 high on conflicts in Yemen.
The Energy Policy Administration Committee, chaired by Energy Miinster Narongchai Akrasanee, today resolved to cut the Oil Fund contribution of all types of fuels, except gasohol E85, to maintain the local pump prices.
Narongchai said that this would limit volatility of local oil prices.
Starting on April 18, the contribution from 95-octane petrol will be cut by Bt0.50 to Bt6.65 per litre: gasohol 95 by Bt0.30 to Bt0.95; gasohol 91 by Bt0.30 to Bt0.45; diesel by Bt0.60 to Bt0.45. While the contribution from gasohol E85 is unchanged, the Oil Fund would subsidise gasohol E20 by another Bt0.60 to Bt1.40 a litre.
The decision would cut the monthly inflows to the Oil Fund by Bt1.32 billion. Its gain would be Bt1.23 billion a month. At present, the fund shows net positive flow of Bt40 billion.
Yesterday, crude oil prices in New York jumped to fresh 2015 peaks, turning higher on news that a tribal group made up of former Al Qaeda militants took control of a major southern oil terminal in Yemen. The terminal is one of the major hubs for the Hadramout region exporting an average of 120,000 to 140,000 barrels per day (bpd) of crude from fields in the area.
While a relatively minor oil producer, Yemen's escalating conflict raises concerns about neighbouring top oil exporter Saudi Arabia.
According to Reuters, Brent crude for June delivery rose 66 cents tosettle at US$63.98 a barrel, rallying from a $62.00 low andreaching a 2015 peak for front-month Brent of $64.95. US May crude rose 32 cents to settle at $56.71, hitting a 2015 high of $57.42 after recovering from a $55.07intraday low.
