Energy Ministry: Energy pricing structure must reflect actual costs

Published on May 4, 2012 by TFP   ·   No Comments

BANGKOK, 4 May 2012 – Energy Permanent Secretary Norkhun Sitthipong has indicated that Thailand needs to adjust the energy pricing structure to reflect the actual production costs.

During an annual seminar on energy policy, Mr Norkhun said the government has been collecting less oil fund contribution for both benzene and diesel, which helps lower the prices down by 3-7 baht. He added the NGV’s 2-baht subsidy and LPG price pegging schemes are among other government’s assistance measures to help the people. But he said these measures have engendered problems.

He explained the LPG price pegging scheme has made Thai LPG prices lower than the prices in its neighboring countries. Consequently, some people smuggle LPG out of Thailand to resell it for a profit. Mr Norkhun suggested that Thailand should allow energy prices to reflect the actual cost.

(NNT : Nuttaporn Chanchokpong)


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