PTT Plc expects to shoulder a total burden of Bt20 billion from subsidies of oil and gas prices this year, up from Bt15 billion last year, but the company still maintains positive view on its financial results for the entire year.

PTT president Prasert Bunsumpun told reporters yesterday that so far this year, the company has shouldered a loss of Bt2.5 billion from the retail oil business as it has been unable to raise prices to match actual costs. He estimated that the total for the year would be Bt5 billion.

Meanwhile, the burden from the natural-gas price subsidy - mainly through the higher supply of natural gas to the Electricity Generating Authority of Thailand (Egat) and through its controlled price to keep low power generating costs - would total Bt15 billion.

"Still, we're confident that PTT's financial results this year will be at a satisfactory level for all parties," Prasert said.

"Last year, our net profit was over Bt80 billion despite the Bt15 billion burden. This year, PTT will record profits from the sale of shares in Rayong Refinery Plc as well as the investment in Thai Petrochemical Industry. We're trying to take care of all stakeholders - shareholders, clients, communities and society - to avoid criticism like in the past."

In the latest round of power price adjustment, with the new price enforced for the four-month period starting from June, PTT has promised to supply low-priced gas to Egat or supply more natural gas to the power-producing agency. Prasert insisted PTT would never subsidise the power price in the same way it did last year.

Last year, PTT channelled Bt6 billion from advance profit - so-called take or pay amount - to subsidise the power price increase.

Last year, PTT's net profit stood at Bt85.5 billion, up from Bt62.7 billion in 2004. In the first quarter of this year, its earnings reached Bt23.7 billion. The PTT share price yesterday dropped Bt4 to close at Bt244, though Rayong Refinery managed to end above the initial public offering price.

An official from the Energy Ministry said yesterday that PTT would be called to use Bt400 million of the take or pay amount to subsidise the power price in the June-September period in order to compensate for the brief shortage of natural gas which forced Egat to use bunker oil which is more expensive than gas.

"Aside from the Bt400 million amount, the power authorities are also reducing the fuel tariff by Bt1.6 billion through the adjustment in new investments of three power producing agencies," the official said.

The Electricity Regulating Board's sub-committee will convene today to consider the fuel tariff for the four-month period. The source said that after the Bt2-billion subsidy, the FT could be raised 10 satang per unit from 75.84 satang quoted for the February-May round.

Meanwhile, Prasert said this week that PTT would not consider cutting retail oil prices as global prices remained high while the average marketing fee for all types of fuel is 40 satang per litre.

"We are closely monitoring the situation. If the market hits troubles, PTT could consider raising prices," he said.

PTT's latest round of price increases took place on Saturday, when the price of all types of fuel was increased by 40 satang per litre.