Currently, the cooking-gas transport charge per 15kg cylinder is Bt10 based on a diesel price of Bt14 per litre. But that's a distant memory as it now stands at Bt27.54 per litre.

Cooking-gas traders say they have been hurting from higher transport costs since diesel prices skyrocketed in the last year.

The approval came after cooking gas retailers complained to the ministry that their transportation costs had increased 80 per cent since before the government floated the retail price of diesel and when it hit Bt27. The Bt5 price increase will be the first time this year that the ministry has approved price-hike request after it froze prices on a basket of goods to curb inflation. Despite that, in May, inflation hit 6.2 per cent, the highest in seven months.

The ministry is aware of the problems facing the industry,

said Siripol Yodmuancharoen, director-general of the Internal Trade Department, after a meeting with cooking-gas operators, the Liquefied Petroleum Gas Traders' Association, and Energy Ministry officials. However, it is concerned that the price rise will affect consumers. Thus, the department will allow the price increase only for rapid-delivery services.

The price of cooking gas is currently Bt250 to Bt265 per 15kg cylinder of gas.

"The department will set up a joint committee comprised of representatives from the government and operators to define what can be considered as 'rapid delivery' within a month to pave the way for all cooking gas traders to adjust their prices," said Siripol.

Normal delivery can take up to six hours, so rapid delivery should be substantially less than that, he said.

Chitsanupong Rungrojngamcharoen, president of LP Gas Traders Association, said gas traders agreed to the ministry's conditions and would soon define rapid delivery services.

"The price increase will relieve the burden of traders since transportation costs have increased by 30 satang per kilometre," said Chitsanupong.

He added that if consumers did not want to pay a higher price, they could use normal delivery services with no price increase.

Meanwhile, a food vendor who asked not be named said she was afraid that cooking gas retailers would force her to order rapid-delivery service only because of the differentiation in price.

She called on the government to soon clarify the conditions for the price adjustment.

Separately, the Commerce Ministry is considering other stringent measures to control fuel imports following the failure of the government's effort to reduce them by 10 per cent.

After closely monitoring fuel imports, the Foreign Trade Department reported yesterday that they had dropped 7 to 8 per cent in the first half this year from the same period in 2005. The government aims to cut fuel imports to 760,000 barrels per day but the current volume is 820,000 barrels.

The government has launched a slew of measures aimed at curbing the country's trade deficit by attempting to reduce imports.

Rachane Potjanasuntorn, director-general of the Foreign Trade Department, said the government might need to devise more stringent measures to curb fuel imports.

The department is also trying to increase the use of alternative fuels to reduce crude oil imports.

Petchanet Pratruangkrai

The Nation