Anusorn said on the sidelines of a seminar that thanks to low marketing fees and falling oil demand, the oil-retailing business this year could post a total loss of up to Bt10 billion, of which PTT Plc would shoulder about 30 per cent.

Bangchak predicts it will lose Bt500 million-Bt600 million this year, compared with Bt800 million last year.

Anusorn said any oil retailers without their own refining capacity were in a bad situation because their revenue depends on selling oil.

So far, Bangchak has closed 20 petrol stations from a total of 500 and it predicts the closure of another 20 in the second half of the year.

It has been reported that hundreds of independent petrol stations have shut down, due to the low marketing fees and a temporary diesel shortage during the hot season. Due to high competition, Shell Companies in Thailand, which has shut down about 200 stations in the past five years, also sees an opportunity for further consolidation.

Meanwhile, Bangchak might increase its prices in a few days after the Dubai crude-oil price in the global market today rose to US$69.40 (Bt2,632) per barrel, which caused the petrol price in Singapore to increase by $2 per barrel. The marketing fee for petrol is now 50 satang per litre, and about Bt1 per litre of diesel. However, Bangchak will closely monitor the oil price direction in the New York, London and Singapore markets before making its decision.

Anusorn said there were many factors causing oil prices to rise, such as tension in the Middle East and a hurricane in the Gulf of Mexico, which could affect supply and lift oil prices even higher. Another factor is the adequacy of US oil stocks.

Chalida Ekvitthayavechnukul

The Nation