BoT member Dusit Nonthanakorn said price hikes would reflect an increase in production and transport costs brought about by soaring oil prices.

"So far, we have asked our members to freeze prices because we don't want to push the burden onto the public," he said. "But we expect they will only be able to maintain the prices for one or two months. After that they may have no choice but to raise prices. Otherwise, they will not be able to continue their business."

He said that as different sectors have different ways of managing their costs, some companies may be able to maintain prices longer than others.

"Based on our assessment, the fishing sector has been worst affected because fuel accounts for 60 per cent of its production costs. In one month, fishing trawlers consume more than 100 million litres of oil. As a result, more than 10,000 fishing trawlers have already decided to let their vessels stay idle at the piers because the rise in oil prices mean it is not longer worthwhile to go out fishing," he said.

The transport sector also bears the burden of higher oil prices. For instance, a Bt1-per-litre rise means an additional 5 per cent in costs for transport operators.

Next month, bodies including the BoT, the Federation of Thai Industries and the Thai Bankers' Association will hold a seminar on how businesses are to survive the current crisis.

Companies will be able to give their views on how the private sector should adjust to cope with an appreciating baht, the oil price hike and the uncertain political situation.

Thanawat Polwichai, a director of the University of Thai Chamber of Commerce, said the rise in oil prices since late last year had meant additional costs of 5 to 10 per cent for businesses, reducing profits by around 7 per cent. He said it had also slowed down consumption by Bt30 billion-Bt50 billion.

Each baht increase in the price of oil reduces public purchasing power by Bt2 billion, he said, adding that an oil price rise to Bt30 a litre would reduce economic growth for the year by 0.2 to 0.4 percentage points, to between 3.8 and 4 per cent.

He predicted inflation would rise by 0.2 to 0.4 percentage points above the current forecast, and that exports would grow by only 13 to 15 per cent.

Sanan Angubolkul, chairman of the energy working committee of the Thai Chamber of Commerce, said the chamber had tried to help businesses by arranging loans up to a total of Bt2 billion at an interest rate of below 4 per cent.