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Manoon Siriwan, former senior executive vice president of Bangchak Petroleum Plc, said that losses could exceed last year's Bt10 billion.

 He also expected that within Monday, PTT would raise its diesel price to match the Bangchak's level, which is now 50 satang per litre higher. Diesel at PTT stations is now Bt1 per litre cheaper than other retailers.

 "I think oil futures should stay in the US$108-110 range for a while until the end of the Winter. In the long term, to affect the price is the US economic prospects and the decision by the Organisation of Petroleum Exporting Countries. These will indicate if global price would hit $120 a barrel. Still, without irregular events like terrorist attack, the $120 price is unlikely," he said.

Global oil prices, at $110 a barrel, would be temporary as they skyrocketed on speculation not demand, said Paibul Nalintarangkul, managing director of Tisco Securities.

However, the high price could send a negative impact on the global economy, but the impacts to Thailand should be limited due to the economic stimulus measures such as the payrise for civil servants as well as product prices control.

 The inflation threat is also limited due to the high base last year. If inflation can be kept at 3 per cent this year, Bank of Thailand should be able to lower the policy rate in the second half, he said.

 

- The Nation