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Published on March 15, 2008

Deputy Prime Minister Sahas Banditkul yesterday said during a visit to the ministry that energy-saving campaigns and measures not harmful to consumers would be launched, because domestic oil prices are set to trail global trends.

A nuclear power plant would help reduce fuel imports, and the first one could take shape within 10 years instead of 13 years as proposed, he said.

PTT will soon consider raising its diesel price 50 satang, to cope with its negative marketing margin of Bt1.30 per litre, said president Prasert Bunsumpun.

Diesel sales at PTT stations are expected to rise to 25-30 million litres a day, he said, because it is now 50 satang cheaper than at Bangchak stations and Bt1 cheaper than at other retailers.

Manoon Siriwan, former senior executive vice president of Bangchak Petroleum, said oil retailers' combined losses could exceed last year's Bt10 billion, as they could not hike their prices as fast as the global price.

Shell Thailand chairman Thirapot Vajrabhaya said the government should let oil prices move freely to encourage saving energy or reduce the refining margin to help consumers.

While subsidies would ease the pressure of high global oil prices, the government should focus on refining margins, which are relatively high. Shell raised the pump prices of all fuel products 50 satang, but its marketing margin remains in the red.

Viroj Mavichak, managing director of major refiner Thai Oil, countered that refiners were also facing tough times from market volatility.

Energy Reporters

The Nation