PTT chief's forecast

Prasert expects crude oil to hover around the $120 level and not to touch $150 this year. If crude oil prices do not spike upward again, this would keep retail oil prices from further hikes once the excise tax cut ends in January, he said. Then retail oil could be priced at Bt35 per litre.

Oil retailers will cut diesel pump prices by 50 satang per litre on Friday, following the drop in global crude prices.

Yesterday, Dubai crude oil was down to $119.80 a barrel, while refined octane-95 petrol fell to $121.25, and refined diesel to $150.29. Oil prices eased on Pira Energy Group's forecast that the world's 2008 economic growth would be only 3.4 per cent, down 0.4 percentage points from 2008 on the US economic slowdown which would send a spill-over effect on other regions.

 The new diesel price at PTT''s stations will be Bt37.44 per litre. Since July, retailers have cut diesel prices by Bt6.80 per litre, while petrol prices dropped by Bt8.70.

Prasert said in a press release that oil price volatility remains and while PTT is ready to adjust prices to help consumers, consumers must also be wise in consuming energy.

Concerning PTT's responsibility to supply more natural gas as a way to reduce oil import bills, senior executive vice president, Chitrapongse Kwangsukstith said the company will expand gas transmission capacity in three main routes to cope with the increasing demand for natural gas, which entails an investment of Bt51.6 billion.

The three routes cover the yellow 250km pipeline along the Asia Highway, the red 170km pipeline from Kaeng Khoi to Nakhon Ratchasima and the orange one from Ratchaburi to Prachuab Khiri Khan.

Thailand's natural gas demand has been rising continually, from 1,000 tonnes per day at the beginning of this year to 2,400 tonnes. This requires PTT to increase gas supply capacity, which now stands at 2,900 tonnes per day. The number of service stations will also be increased from 225 now to 350 at the end of this year.

Yesterday, a new station was opened in Patham Thani, by Energy Minister Poonpirom Liptapanlop. The mother station will be able to supply 550 tonnes of natural gas a day. With a truck fleet which could make up to 180 trips of shipments daily, it can serve up to 30 stations of conventional size in Bangkok and peripheral provinces.

Poonpirom will today attend the National Energy Policy Committee's meeting, where the contribution structure from diesel distribution would be reviewed. As a temporary measure, during March and July, oil retailers were allowed to cut their contribution from diesel sales to the Oil Fund and the Energy Conservation Fund worth 90 satang per litre.