LPG prices set to float
Energy Minister Piyasvasti Amranand reiterated yesterday that the price of liquefied petroleum gas (LPG) will be floated before the interim government's term ends, and said the annual subsidy of Bt24 billion would be shifted to alleviate the impact from higher oil prices.
"The floating would not affect consumers and the economy. Right now, monthly subsidies are reaching Bt2 billion. Once the subsidy ends, the state can put the money to other use, such as reducing the oil retailers' contributions to the Oil Fund. This can immediately reduce fuel prices," he said.Piyasvasti has vowed from his first days in office to float the price of LPG. The government is entering its sixth month in office in May. While most of the subsidies are borne by refineries, the Oil Fund's own gas subsidy cost is Bt300 million per month. The Oil Fund finances the subsidy with contributions from oil retailers. As of April 3, its cash stood at Bt4 billion and the fund still owes Bt4.8 billion to financial institutions and another Bt17.6 billion to bond-holders. Once the Fund ends the subsidy and clears all debts this year, the ministry has short-listed a few options to use income in reducing oil retailers' contribution.
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