'Don't blame Samak for oil-price hardships,' say experts

They suggested the Energy Ministry impose compulsory energy-saving measures, to put a brake on consumption.

"The government has done fairly well in the first 100 days by allowing market mechanisms to work with minimum intervention," said Manoon Siriwan, an oil expert and former president of Bangchak Petroleum, referring to the ministry's recent push for oil firms to cut their diesel-refining margins.

"When first taking office, the government could not know in advance of the sharp jump in oil prices, and most measures were quite weak. But as oil prices hit record highs, the ministry should realise the necessity of compulsory measures, which must be implemented now before retail prices move even higher."

While focusing on energy consumption in office buildings, the Energy Ministry was advised to look at the residential sector also. For example, condominium-owners could be required to install solar-cell panels to reduce energy consumption from the grid, while property developers could be required to install solar panels on new housing units.

Shell Thailand chairman Thirapot Vajrabhaya said the Energy Ministry should do more to educate the public on the benefits of saving energy. For instance, driving a car at 120kph consumes 30-per-cent more energy than driving 90kph.

While the ministry's measures are longer term, covering the next three to five years, he urged the ministry to come up with urgent measures to take effect within the next three to six months.

Oil analysts expect crude oil prices to spike at US$150 to $200 (Bt4,900 to Bt6,600) per barrel this year, up from $130 at present. At $150 a barrel, petrol would retail at Bt50 a litre.

Thirapot said without compulsory measures, the government must extend energy-saving incentives.

"They can impose any measures that do not hurt the public. Lower speeds would not hurt them, but they would not like it if the roads were open only for cars with licence plates containing odd and even numbers on alternate days," he said. "Still, any measure must minimise public disturbance, and the public should be offered alternative choices." He said voluntary measures were not working. Oil consumption over the past four or five months have not shown any sign of falling despite the rising prices.

One suggestion is for the ministry to lend money to individuals for the purchase of energy-saving appliances, while new buildings must comply with energy-saving regulations. They also include changing to energy-saving light bulbs at temples and mosques, engine tune-ups and air-conditioner maintenance.

Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee said not all of the Energy Ministry's energy-saving measures were working, although more comprehensive results should be known later on.

While commending the government's push on E85 gasohol, he said for it to succeed, the government must have a clear policy regarding alternative fuels. A number of discussions with related parties must be held before E85 is put on the market.

Federation of Thai Industries chairman Santi Vilassakdanont believes the Energy Minister Poonpirom Liptapanlop was conscientious is in favour of her policies promoting E85 and natural gas for vehicles.

"I feel sorry for her, because she must solve several difficult energy problems at a time when oil prices are extremely high," he said.

Poonpirom has been heavily criticised for her move to have refineries cut their diesel refining margins, measures mostly formulated before she took office. Details of the refining-margin reduction will be finalised today.

Santi admitted  refineries would be affected by the order, but said that was a good thing, because the public would be able to obtain cheaper diesel.

While it is not clear whether the cheaper diesel would be available to all or only the most heavily affected sectors - fishery and transportation - Santi said the ministry must move quickly to help the transport sector.