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Published on April 25, 2008

The Nation

Chakkrit Charuchinda, vice president for strategic retail marketing, said the closures were not a result of delayed increases in retail prices to catch up with global rates.

"The operators could not cope with higher operating costs [utilities bills and wages]. Some were located in poor locations, and others could not improve their business in time," he said. PTT now operates 1,172 stations.

Meanwhile, Energy Policy and Planning Office director-general Viraphol Jirapraditkul said it was possible that crude oil could rise to $150 a barrel.

He said the market must be monitored on a daily basis and the price could soften only when hedge funds sell their investment in oil futures. To relieve the rising burden, the Energy and Finance ministries are studying a proposal to cut diesel excise tax from Bt2.30 per litre.

Energy Ministry permanent secretary Pornchai Rujiprapha yesterday said Finance Minister Surapong Suebwonglee would approve all details before the decision is forwarded for Cabinet approval next Tuesday.

Viraphol said more vehicles must shift to natural gas. This would require another Bt5 billion to Bt6 billion in new loans this year for retrofits aside from Bt2 billion loaned by PTT.

Yesterday, light sweet futures rose to $119 a barrel, while Dubai crude was $110. PTT said current retail prices meant it shouldered an average loss of Bt2 per litre in marketing margin.