May surplus put down to cut in fuel consumption

a petrol station worker fills a customer’s tank. Now that consumers are more aware of energy saving the consumption of fuel has dropped, bringing a trade surplus in May.

Due to concern about energy prices, Thailand's fuel consumption dropped last month, bringing a trade surplus of US$1.29 billion (Bt43.28 billion).

The Commerce Ministry yesterday reported May exports reached a record monthly high, jumping 21.4 per cent year on year to $15.46 billion, while imports grew 15.7 per cent year on year to $14.16 billion.

However, imports dropped 9 per cent from April, because of a significant fall in fuel imports, particularly finished oil, which decreased 71.55 per cent.

"Higher oil prices may have changed consumers' behaviour, bringing a trade surplus in May," said permanent secretary Siripol Yodmuang-charoen.

The Foreign Trade Department said demand for oil last month fell sharply by 29.12 per cent to 624,623 barrels per day, from 881,239 barrels in April.

Despite the return to a trade surplus from April's huge trade deficit, Siripol expressed concern about the remaining months' trade-deficit figures, because of a weakening exchange rate and the possibility of rising oil prices.

The trade deficit in the first five months of the year was $1.69 billion. Exports grew 22.05 per cent to $70.94 billion, while imports increased 34.22 per cent to $72.63 billion in that period.

Department of Export Promotion director-general Rachane Potjanasuntorn said strong export growth this year should stimulate economic growth despite rising oil prices. Last month alone, exports of farm goods increased significantly by 47.2 per cent. The value of rice exports jumped 128.2 per cent, rubber 33.2 per cent and shrimp and processed shrimp 14.8 per cent.

Exports of industrial goods also increased 20 per cent last month. Industrial goods recording export growth of more than 20 per cent included plastics, construction materials, automobiles and auto parts, jewellery, rubber goods, cosmetics and printing products.

Exports to all markets also surged continuously, except to Latin America and Taiwan, due to stiff competition there. Exports increased 35.8 per cent to new markets and 14.8 per cent to traditional markets. Rachane said exports to both traditional and new markets would be equal within a few years, due to aggressive export promotions in there.

At present, exports to traditional markets account for 51.8 per cent of all exports, with new markets accounting for 48.2 per cent.

To promote Thai exports, the ministry will hold a "Made in Thailand" fair from August 8-17, aimed at attracting up to 1 million buyers from abroad.

Rachane said the fair would not only increase exports of Thai goods, but also reduce the burden of rising prices on consumers. About 4,500 exhibitors are expected to participate.