LPG subsidy cut; price to rise from today
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The Energy Policy Administration Committee yesterday resolved to increase the price of liquefied petroleum gas (LPG) for both transport and cooking by 50 satang per kilogram.
The increase, made while the global price of LPG is low allowed the government to reduce subsidy for LPG from Bt1.75 to Bt1.3, the panel announced following its meeting, chaired by Energy Minister Narongchai Akrasanee.
The increase, that will take effect today, will see the price of LPG rise from Bt22.63 to Bt23.13 per kg.
Narongchai said the committee made a well-timed move to cut the subsidy and increase the retail gas price while the world market price has dropped from over US$700 per tonne mid-year to about $540 per tonne now.
Earlier, Narongchai said the government would not increase the LPG price again before the New Year.
The committee also resolved to reduce prices of all gasohol petrol, except E85, by 60 satang per litre.
He said the committee also resolved to collect 60 satang from diesel price per litre to contribute to the Old Fund. But the new contribution rate would not affect the retail diesel price at Bt29.39 per litre now, he said.
