Samak's diesel deal

Poonpirom said high-sulphur diesel was currently provided only to fishing boats under the "Purple" and "Green" oil schemes. Under the Purple scheme, the Energy Ministry provides 15 million litres a month to small fishing boats.

A source from an oil company said several traders had approached Thai oil companies offering the sale of oil from Russia, but most companies have turned down the offer due to a number of concerns.

The source said there was doubt whether the traders could deliver the oil as promised, or whether the transactions would violate the anti-money laundering law. The other concern lies in the quality of the oil, which could be against Thai statutory standards.

The source added that importing high-sulphur oil is against the law and is allowed only with permission from the Pollution Control Department and the Energy Business Department.

"The prime minister announced that the imports would entail 300,000 tonnes a month, or 360 million litres a year. That accounts for 24 per cent of domestic diesel consumption. The problem is how to find enough tanks for the huge volume, as we will need special tanks for high-sulphur oil," the source said.

Samak said in his weekly radio programme that the Russian oil, which is Bt8 per litre cheaper than domestic prices, would reach Thailand in 60 days.