Boost today for Gasohol, Diesel users

Deputy Prime Minister and Finance Minister Surapong Suebwonglee said yesterday that following the drop in diesel prices, transportation and production costs would fall and this could delay the requested price hikes for more than 1,400 items.

"We won't stop them [producers] from raising prices, but they must be fair to consumers. Amid fierce competition, manufacturers are also concerned about purchasing power and those with efficient cost management would gain an advantage. If the market mechanism is retained with full competition, unreasonable price hikes won't take place," he said.

The manufacturers that have been knocking on his door to raise the prices of some 1,400 items must factor in the lower oil prices in their proposals, he added.

As the cost of living is set to ease due to the six measures approved by the government this month, including the tax cut, the University of the Thai Chamber of Commerce yesterday revised its economic forecast from 5-5.5 per cent up to 5.5-6 per cent.

Today, pump prices of gasohol and diesel are slashed by a whopping Bt4.70 and Bt3.50 per litre, respectively.

While the excise tax cut accounts for Bt3.88 and Bt2.71 per litre of the decline, a retreat in global oil prices allowed oil retailers to chop the fuel prices further by Bt0.83 and Bt0.79 per litre, respectively.

Yesterday, global oil prices eased by US$3.98 to $124.44 (Bt4,163) a barrel, near a seven-week low, as a stronger US dollar diminished the appeal of commodities as a currency hedge and data showed faltering demand in the US and Japan.

"We've been ready to cut retail prices to help consumers. We have axed pump prices six times so far this month, bringing down petrol by Bt8.10 per litre and diesel by Bt5.50," PTT president Prasert Bunsumpun said.

The other five measures approved this month will kick in on August 1.

Apartment tenants who pay no more than Bt3,000 in monthly rent also stand to benefit from the measures as they would be exempted from paying electricity bills, starting in September. Apartments must register first for the privilege.

However, enterprises and motorists will have to shoulder higher expressway tolls in September as they jump by 12.5-17.6 per cent depending on the size of the vehicles.

The Expressway and Rapid Transit Authority of Thailand's board has resolved to raise the tollway rate by between Bt5 and Bt15. The rate for four-wheel vehicles will go to Bt45 from Bt40, for six- to 10-wheel vehicles to Bt70 from Bt60, and for vehicles with more than 10 wheels to Bt100 from Bt85.

Tolls for other expressway sections will also be increased.

The new rates will be submitted to the Transport Ministry, and its regulation will be amended to enforce them.