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The Energy Ministry has said it will ban the sale of gasohol 91 from January 1, 2018, in order to lower overall administrative costs under the Oil Plan, while refineries may have to invest Bt10 billion each so as to produce only gasohol 95.
Witoon Kulcharoenwirat, director-general of the ministry’s Department of Energy Business, said refineries accepted the ban on the sale of gasohol 91 in a discussion on Thursday, though they voiced concerns over the risk of a shortage of regular fuels. The department is ready to offer assistance like reducing import duty, he said.
“Among Thailand’s six refineries, Bangchak Petroleum plans to change its standard fuel type to [gasohol] 95. Based on a 20-year payback period, costs will rise 2 satang per litre. It’s very low and should not be a burden on users,” Witoon said.
He added that the department was planning to propose that officials from the Energy Ministry talk to their counterparts at the Finance Ministry about raising the tax on premium gasohol 95 and premium diesel to Bt10 per litre, or Bt4 higher than the current levy.

FPO PREDICTS HIGHER CONTRACTION IN EXPORTS

The Fiscal Policy Office has upped its forecast of contraction in this year’s exports to 1.9 per cent from an earlier estimate of 0.7 per cent because of the fragile state of the global economy and high uncertainty.
However, FPO director-general Krisda Chinavicharana believes that the Thai economy will this year expand by 3.3 per cent on the back of high public investment and spending after an acceleration in the government’s budget disbursement. Last year’s growth stood at 2.8 per cent. In addition, the higher number of foreign tourists, particularly from China and Russia, is helping tourism-related businesses, he said.
Thailand’s trade balance is expected to face a higher surplus this year due to a slower contraction in exports. The current account is projected to be in a surplus of US$40.9 billion or 10.3 per cent of the gross domestic product because of an increase in the surplus of trade and services.
“The forecast of Thai economic indicators takes into account risks that need close monitoring,” Krisda said. “These risks include trading countries’ economic slowdowns, fragile business confidence and foreign-exchange fluctuations for the rest of the year.”

INSTITUTE FOR INNOVATIVE AGRO PRODUCTS MULLED

The Commerce Ministry will put forward a plan to set up an institute for the promotion of innovative agricultural products for Cabinet’s consideration next Tuesday, the ministry’s permanent secretary Chutima Bunyapraphasara said.
The ministry will seek a budget of Bt750 million for five years. The role of the institute, which will come under the ministry’s aegis, would be to create a market for these products. The ministry aims to release at least 10 such products over the next five years at a market value of Bt20 billion. For the first year, it will launch two new products – rice oil and rice flour.