Energy policy 'fuelling price rises'

If the price of diesel rises, the price of all goods would increase, Abhisit said.
“The government must review its energy policy and not listen to its supporters who nonsensically argue that no one uses diesel oil to make omelettes,’’ he said.
The Democrat Party leader was speaking at a seminar entitled, “Brave through the crisis of price rise”.
Abhisit said the energy minister’s recently announced measures to handle the oil-price increase would push the burden onto the public, adding that the minister had distorted the facts.
Prices of LPG and NGV should not be linked to export prices, Abhisit said.
“I have never seen a country that produces gas and sells it domestically at the same price that it exports it for,’’ he said.
He said the government must be attentive to solving the problem of inflation and rising prices.
“Inflation is horrible because money in our pocket just disappears. The inflation problem is complicated and the government must pay close attention. The government cannot control the price of goods, because the price is dictated by supply and demand,’’ he said.
Abhisit said the government should admit that the public faces a rising cost of living, instead of accusing the Opposition of exaggerating the problem and of causing panic and hoarding.
“If the prime minister believes the claim by government supporters that we are not facing a problem of price increases, the prime minister must publicly say the government does not need to do anything to solve the problem. If that is the case, why did it hold a meeting about the rising cost of living?’’ he said.
Abhisit said price rises were occurring at the same time that farmers suffer low prices for their produce. The rice-pledging scheme had not met its targets, he said.
The Opposition leader urged the government to review its policy to import palm oil to support PTT’s production of bio-diesel.
“The energy minister’s statement that Thais have been enjoying low-priced gas for a long time – that it is time they paid more for gas so they learn how to economise – is not right. Do not say that, because people do not burn gas just for fun,’’ he said.
Praipol Kumsap, a lecturer at Thammasat University’s Faculty of Economics, said the government’s policies contributed to price rises. The cost of production depends very much on the oil price. “If the government does not want the oil price to increase to a level that impacts the public, it has to use the mechanism of the Oil Fund, otherwise the public will have to pay from their own pocket,’’ he said.
The academic said that although PTT made profits from selling gas, it lost money from selling LPG and NGV because of transport costs. “It is inevitable the company raises its prices, but it should not raise them too high,’’ he said.
Chaiwat Saengchai, an adviser to the Fresh Market Association, admitted that the price of protein-rich foods such as eggs and pork had increased, but said consumers could opt to eat other foods that provide protein.
He criticised the government’s price-pledging programme, which saw only low-quality rice being pledged. He said the government stood to lose huge sums from the programme. “This populist policy uses too much money. Splurging money will only ruin our future; eventually we will face a rainy day,’’ he said.
Chaiwat also opposed the policy to increase wages by 40 per cent, saying small and medium-sized manufacturers would be hit hard.
Pheu Thai Party spokesman Prompong Nopparit said he would propose to the party that the Prime Minister set up a ‘war room’ to solve the problem of rising prices, with officials from the Commerce and Transport ministries invited to discuss these concerns.