Petrol set to top Bt30 a litre
A petrol station near Wat Suan Kaew on Bang Kruay-Sai Noi Road in Nonthaburi province displays a sign reading ‘Self-serve, save 20 satang’, hoping to entice motorists to fill up their tanks there.
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PTT Plc is preparing to raise retail petrol prices in the next few days if finished oil prices in the world market do not ease. If it does, it could push local prices above Bt30 per litre for the first time.
Octane-95 is now selling for Bt29.79 per litre after months of pump prices nudging up by increments of 40 satang. "We will know in the next few days if we need to increase retail prices. But now the petrol marketing margin is minus-10 satang per litre," said PTT president Prasert Bunsumpun. "Oil prices should remain high in the second half due to tight supplies." Retail diesel prices would be remain untouched, since diesel's marketing margin is 70 to 80 satang a litre. Finished petrol in Singapore recently reached US$86.85 (Bt3,290) per barrel, while Dubai crude oil has hovered at $68.87. The relentless rise in retail prices has resulted in consumption declining 10 per cent compared to last year, Prasert said. If petrol passes Bt30 per litre, demand could dry up even further. The country consumes 20 million litres of petrol and 50 million litres of diesel a day. To encourage more energy savings, retail prices should be set in line with actual market prices, he said. Without realistic pricing, oil traders won't survive and Thailand would end up importing more oil. Oil traders have been trying their best to delay price hikes, leaving them with a burden of more than Bt10 billion since the beginning of this year. Out of that, PTT has shouldered Bt3 billion. Oil subsidies last year topped Bt90 billion while consumption increased 10 per cent because consumers were allowed to pay below-market prices thanks to a government subsidy programme..
Energy Reporters The Nation
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