From January to October, LPG consumption rose 9 per cent year on year, averaging 230,000 tonnes a month. However, consumption among vehicles grew 54 per cent, while industrial and household use expanded only 14 per cent and 6 per cent, respectively.

Demand in vehicles now accounts for 14 per cent of total LPG consumption, while the household, industrial and petrochemical sectors consume 53 per cent, 16 per cent and 17 per cent of the total, respectively.

Panich Pongpirodom, director-general of the Energy Business Department, said that officials from the two ministries would meet next week to launch measures to encourage vehicles to switch to natural gas for vehicles (NGV) and to put stringent controls on the installation of LPG tanks. The latter are considered less safe and more expensive because of government subsidies.

Under the measures, new taxis could be required to install NGV tanks, while NGV-fuelled vehicles could be eligible for a lower registration fee.

"LPG demand among vehicles remains high due to several factors. Aside from the LPG price subsidy, NGV installation comes under stricter controls, and the number of NGV stations remains limited," Panich said.

He believes that once PTT expands the number of NGV stations to more than 200 - by next January - more vehicle owners will switch to natural gas.

The department expects NGV consumption to reach 19 million cubic feet a day next year, from 11 million to 12 million this year.

Boonsong Kerdklang, deputy head of the Energy Policy and Planning Office, said that, given increased LPG use for vehicles, subsidies may continue past this year.

He said LPG prices tended to rise late every year, and thus it was not the right time to float the gas prices.

LPG is now being quoted at US$458 (Bt16,700) per tonne. Retail prices are currently subsidised by the Oil Fund at Bt1.52 a kilogram.

"How the subsidies will be tackled depends on government policies as well as natural-gas prices, which usually drop to the lowest point in the middle of each year," he said.

The Energy Business Department said that during the first 10 months, fuel consumption dropped steadily from the same period last year.

Diesel consumption dropped 7 per cent to a daily average of 50 million litres, while petrol consumption declined 12 per cent to 16.1 million litres daily, from 18.3 million last year.

Panich attributed the drop in diesel consumption to the fuel-saving campaign, while petrol use dropped because some motorists have switched to NGV.

At present, 23,127 vehicles are fuelled by NGV. Gasohol use more than doubled in the corresponding period, from 1.5 million litres a day last year to 3.5 million litres this year. Gasohol use accounted for 18 per cent of total fuel consumption.

Lower consumption also led to a 0.4-per-cent drop in crude-oil imports during the first 10 months, from 845,000 barrels a day to 842,000 barrels.

Annual daily imports are expected to fall to 810,000 barrels for the rest of the year.

However, the import value rose 20.5 per cent year on year, to Bt649.58 billion.

Energy Reporters

The Nation