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Now that the price of oil has climbed above US$135 (Bt4,401) a barrel and with economists expecting it to remain high for a while, energy efficiency should be made a government priority. Is it time for the government to launch a national energy efficiency campaign?

As Thailand depends heavily on oil imports, the rapid increase in the price of oil has adversely affected inflation and the country's economic growth momentum.

But so far, the Samak government has failed to spell out a comprehensive plan to promote energy efficiency. The government put the burden on the Energy Ministry to find ways to subsidise the price of oil. Aside from that, it has left the burden on local refiners to curb rising prices. These temporary measures will slightly ease the burden on consumers.

However, what Thailand needs is a long-term strategy to deal with the rising cost of oil systematically.

 For instance, following a request by the government, four refiners have agreed to cut the ex-refinery price of diesel by Bt3 for six months, totalling 732 million litres. This is despite the fact that any possible regulatory changes to control ex-refinery prices would have a negative impact on Thailand's oil-refinery sector.

Energy Minister Poonpirom Liptapanlop yesterday secured Cabinet approval for tax cuts on E85 fuel and E85-using car models to curb oil imports and rising inflation. The Cabinet also approved a proposal to cut the excise taxes on E85, from Bt3.65 per litre to Bt2.75, to encourage local ethanol producers and refineries to produce more biofuel.

The push for alternative energy sources came after the Commerce Ministry revealed high inflation in May, which jumped 7.6 per cent year-on-year. The rise was largely the result of the higher price of oil. There is room for more biofuel usage.

But the push for biofuel alone is not enough. Piyasvasti Amranand, former energy minister, commented that even though the use of gasohol and biodiesel has increased dramatically over the year, it would only be able to replace benzine or diesel by 7 per cent by 2554.

The government should thus promote public awareness on energy consumption. For instance, mass transport should be more encouraged. Public bus operators should improve their services to encourage more people to shift from their personal cars.

Besides, the Transport Ministry and mass-transit agencies should require public and private bus operators to accelerate the modification of bus engines to natural gas (NGV) or liquefied petroleum gas (LPG) to lessen the dependency on imported fuel. The recent strike by private bus operators showed that the government's campaign to encourage private bus operators to install NGV or LPG was not efficient. Special tax for cars that use LPG or NGV should be introduced to encourage engine modification.

Still there must be a change in user behaviour. Drivers should be taught to drive with the most energy efficiency. At present, people still drive at the same high speed with LPG. Gas is finite. And Thailand is not a major gas producer. The way we consume energy should be reconsidered and put on the national agenda.