Promoting a green culture

Options debated for lower oil dependence

The Energy Ministry has asked the Finance Ministry to delay a hike in the natural gas for vehicles (NGV) equipment import tariff to 2010 in a bid to promote alternative energy.

The tariff is due to be raised at the end of this year.

Speaking at a seminar at Naresuan University yesterday, Energy Minister Poonpirom Liptapanlop said that in light of skyrocketing oil prices, alternative energy would be promoted. The ministry will rush the construction of more NGV stations from the current 160 by seeking cooperation from state agencies.

ICC International chairman Boonkiat Chokwattana told the seminar that high oil prices could lead the Thai economy to disaster but not a total collapse.

"If Thailand gets prepared now, we will survive," he said. "Thais also need to adjust their consumption behaviour, such as by drinking water from glass bottles, not plastic bottles. The government should also charge higher taxes on water suppliers using plastic bottles, while manufacturers should lower energy consumption," he said.

PTT acting senior executive vice president Thewin Wongwanic said that Dubai crude oil could range between US$80-$120 a barrel (Bt2,511-Bt3,854) in December. Next year it would not fall below $100 while the West Texas price could climb to $200 in the next few years. "Oil producers are pleased with the current prices, but the prices could drop if speculators unload their oil futures," he said.

Thailand, which last year spent Bt850 billion on fuel imports, would suffer from this situation, he added. To cope with higher oil prices, the public should use more public transport and alternative energy. The industrial sector should also consume more alternative energy.

Energy Ministry inspector Amnuay Thongsathit said the government should also promote alternative energy generation in the provinces by  raising the purchase prices from producers.

In the pipeline is a plan to raise the "adder" - the extra price on top of regular purchase prices - for recyclable power: solar, from Bt8 per unit to Bt12; biomass, from Bt3.50 to Bt4; and wind, from Bt2.50 to Bt6. "This may affect the fuel tariff of electricity bills, but the impact is tiny compared to long-term benefits," he said.