Govt told to cut refining margins

He noted that subsidies would reduce the pressure of high global oil prices to some extent. The government should focus more on the refining margins which are relatively high.

 "The government should let the market mechanism at play. As prices are higher, consumers would need to shoulder higher costs and this would lead to saving. Meanwhile, the government should also invest in transportation systems like the urban trains to thoroughly serve the public," he said.

 He noted that the direction of world oil prices are unclear, but the prices may not ease soon due to speculation and global imbalances.

 Shell on Friday raised the prices of all fuel products by 50 satang per litre, but the marketing fee remains at a loss.

 Thirapot insisted that despite negative marketing margins, Shell has no policy to cut the revenue to business partners or to take over their service stations.

- The Nation