Manoon Siriwan, executive vice president of Bangchak Petroleum Plc, forecast that domestic retail prices for oil would be stable and oil retailers would have marketing margins at an average of 80 satang per litre. He said world oil prices are decreasing, so the country's retail oil prices at petrol stations are most likely to decrease next week.

For the rest of the year, Manoon said domestic gasoline prices would weaken due to lower demand now that the country's high season for travel has passed. On the other hand, diesel prices domestically would gradually rise from September.

He added that if there was any turbulence, diesel prices would see an unusual increase.

From early this year, the continuous increase in oil prices has affected the sales of oil retailers, especially for diesel, which have fallen by 7-8 per cent.

Demand for diesel has decreased to an average of 52 million litres from 55-60 million litres per day.

However, demand for benzene has stayed the same since last year at an average of 25-26 million litres a day.

Retail prices for 95-octane benzene are now quoted at Bt30.19 per litre, while diesel is sold at Bt27.94 per litre.

Caretaker Energy Minister Viset Choophiban said yesterday that although world oil prices have been decreasing over the past few days, the ministry would have to further monitor the oil situation.

He insisted, however, the government has no intention of intervening in the domestic oil market, leaving it to move in line with world market prices. The government would instead promote alternative fuels such as biodiesel, gasohol and natural gas.

Energy Reporters

The Nation