Taxis to be shielded but must change to NGV

Demonstrating taxi drivers and operators urge the government to ensure ample supplies of LPG.

The Energy Ministry has undertaken to protect taxis from this month's increase in the price of liquefied petroleum gas (LPG).

However, while taxis will be shielded from the higher cost of LPG, they will be required to convert to natural gas for vehicles (NGV) this year.

As a short-term measure to ease shortages, 100 LPG stations owned by Siam Gas, World Gas and PTT will operate around the clock, Energy permanent secretary Pornchai Rujiprapha said after talks with taxi drivers yesterday.

Siam Taxi Cooperatives chairman Witoon Naewpanich said the ministry had promised to shield taxi drivers using LPG from price increases. Details of the assistance are not yet available, but a working committee will be established to determine the impact.

Taxi operators asked the ministry to avoid raising the price of LPG Bt4 or Bt5 per kilogram in a single move, because that would affect drivers who had not been allowed to raise metered fares. As well, they asked the ministry to ensure sufficient supplies of LPG.

"We're pleased with the discussion to some extent," Witoon said. "We're ready to cooperate. We expect more discussions between regulators, distributors and users in the future, and there should be planning on how to fuel 70,000 taxis so that taxi operators can plot the right business plans."

Energy Minister Poonpirom Liptapanlop yesterday said the price of LPG for vehicles would be adjusted this month, making it more expensive than gas for household use. A working committee had been set up to study the effects of the change. Chaired by Pornchai, the committee will consist of representatives from relevant agencies, such as the Internal Trade and Land Transport departments.

PTT senior executive vice president Chaivat Churitti said LPG supplies were sufficient to meet demand, which reached 285,000 tonnes last month. Of that, PTT supplied 214,000 tonnes and refineries the rest.Other LPG traders could import the gas on their own, in order to increase supplies.

Other distributors have avoided importing LPG, because they do not want to shoulder the extra expense. Imports cost US$905 (Bt30,300) per tonne, compared with the domestic price of about $300 a tonne, he said.