Thailand confirms LPG hike as govt scrambles to soften impact of soaring energy prices
Prime Minister Gen Prayut Chan-o-cha has ordered government agencies to find ways of softening impacts on the public of soaring energy prices and present them at Tuesday’s Cabinet meeting.
The move comes after Prayut met for talks with Energy Minister Supattanapong Punmeechaow and economic advisers on Friday afternoon, said government spokesman Thanakorn Wangboonkongchana.
The Russia-Ukraine war has driven up energy prices, pressuring the retail price of oil and LPG and threatening to deepen Thailand’s inflation woes.
After meeting with the PM, Supattanapong said the price of liquefied petroleum gas (LPG) will be raised by 1 baht per kilogram for a 15kg canister from April 1.
However, the government will cap the price of diesel at Bt30 until the end of May.
The price of a barrel of oil hit a 14-year high of US$180 on Wednesday but had fallen back to around $110 by Sunday (March 12).
The PM also heard from economic advisers about progress on bilateral trade and investment with Saudi Arabia after relations between the two countries were restored in January.
Thailand and Saudi Arabia have so far discussed investment in oil refineries, petrochemicals, electric vehicles (EVs), biofuel, biochemicals, video games and entertainment industries. The government expects these investment projects to start taking shape from April, according to Thanakorn.
Prayut also acknowledged progress in luring investment via promotions for Thailand’s new S-curve target industries, including manufacturing of EVs, electronics and pharmaceuticals, added the spokesman.
