A diesel-fuel shortage is costing bus-service operators dearly while fears mount that a sharp rise in transport fees and fares will be imposed after Songkran.

The head of the national inter-provincial bus service group yesterday proposed setting up a five-part committee to review the situation and reconsider requests to raise fares nine satang per kilometre for buses operating nationwide.

Most bus services are losing money because operators have to pay Bt1 above regular rates for diesel in order to secure supplies, said Sujinda Cherchai of the Association of Operators of Passenger Bus Services.

Supply has been squeezed since a new quota system was imposed after diesel shortages began earlier this month.

Sujinda said the proposed five-part committee would comprise representatives from the bus association, the state-run Transport Company Limited (which grants concessions to independent operators), the Transport Ministry, the Department of Land Transport and members of the press.

Sawai Wongworrachart, head of PTT Plc's regional office in Songkhla, said the quota system was needed to curb hoarding and prevent distributors from supplying cheaper PTT-made diesel to petrol stations.

PTT will adjust the price of diesel after Songkran, he said.

The PTT stations in the seven southern provinces under his responsibility were not facing a shortage during the holidays, Sawai said.

Olarn Uyakul, head of the provincial industrial council in Songkhla, said transportation fees would certainly be raised after Songkran.

Narong Saeng-arun, owner of Charn Tour Khon Kaen, said his company would raise fares after the holidays.

More than 60 buses based in Khon Kaen have to fill up in outer areas of the province as petrol stations in the provincial capital sold their fuel to pickups and other small trucks.

Bus operators have to compete for petrol, said Bunmee Tengjaroenkul, of Isaan United Motors Co Ltd.

Bus drivers often had to visit several stations to fill up as many refused to sell large quantities of fuel as a result of the shortage, Bunmee said.

Oil suppliers and distributors had not filled his company's petrol stations because they were only servicing retail petrol kiosks, he said.

Somchai Jiaranaiphanich, head of the oil retailer's association in Khon Kaen, said half of the 150 local petrol stations had temporarily shut because of high prices.

"They would be operating at loss if they had stayed open. Why would they want to buy oil at high prices and then resell it at lower rates?"

He called on PTT Plc to float the oil price to end the shortage.

The shortage has been worsened by the temporary closure of oil distilling facilities at Bangchak Petroleum Plc in Chon Buri's Sri Racha district for repairs.

Somchai said he feared the shortage would continue for two more months.