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Published on February 9, 2008

She did not rule out the possibility of reversing the float of liquefied petroleum gas (LPG) or cooking oil.

"If the LPG price rises further, it will have an economic effect on the public," she said.

"We, an elected government, must find ways to ease the impact. But I have to discuss with the agencies involved ways to cushion the impact without affecting the price-calculation formula."

Former energy minister Piyasvasti Amranand earlier advised the new government not to subsidise energy prices and decided to float the LPG price gradually from last December onwards.

Piyasvasti said the previous government did not support the oil-subsidy policy, because that would create a huge debt for the incoming administration.

Besides, Piyasvasti said the distortion of prices would not encourage the general public to maximise energy efficiency.

However, it is expected that the ministry under Poonpirom may revise price controls again as part of the overall populism policy of People Power Party's coalition.

She said that after the LGP price had been adjusted in accordance with a new price formula, 95 per cent of the LPG price in this year's first quarter referred to the cost at the gas-separation plant and the other 5 per cent to exports.

As a result, the cooking-gas price has risen twice this quarter for a total of Bt1.40 per kilogram.

Based on the formula, the price will rise another 80 satang per kilogram.

This will certainly affect the public.

Poonpirom said she would meet with the ministry's executives next week to find ways to ease the public's burden.

"But I can't say whether we'll freeze or interfere with the price like in the past, because we must look at the whole structure," she said.

As for the electricity fee, which will be adjusted this month, she said the ministry would discuss with the Electricity Generating Authority of Thailand about how to help the public.

She would not rule out the possibility of considering a nuclear power plant.

"The project is in the stage of studying the pros and cons, in order to see whether the public would accept it," Poonpirom said.

As for coal power plants, the new energy minister said there were several that had not caused an effects for their local communities, such as the BLCP plant in Rayong and Mae Moh in Lampang.

The Nation