LPG price increase still pending

 He said on Wednesday that that the Energy Policy and Planning Office and the Energy Business Department are still discussing on measures to prevent the use of household cooking gas with vehicles and industrial equipment.

 "The price should be raised to somewhat reflect the actual cost, though it could be raised in steps. Despite the increase, we believe that LPG consumption would remain high due to the large base of users and Thailand would continue to import the gas. Yet, the price increase should put a brake on the consumption growth," he said.

 The office revealed that LPG consumption has been on the rise for three years. In the first half of this year, it increased 20.5 per cent to 2.3 million tonnes. While household consumption accounted for 44 per cent, the other is used by transportation and industrial sectors. Yet, while the household consumption increased 13.4 per cent from the same period last year, that of transportation and industrial use grew 23.6 per cent and 19.6 per cent, respectively.

 Thailand has to import the gas for the first time in 12 years, having brought in 100,000 tonnes so far this year. PTT now shoulders the difference of higher global price and lower domestic price. The Oil Fund will pay back the burden, but it is not finalised when. PTT's board has allocated Bt5 billion to cover the LPG imports, fearing that the higher amount could affect its cashflow.

 Metta Banturngsuk, director-general of the Energy Business Department, said the National Energy Policy Committee, chaired by Energy Minister Poonpirom Liptapanlop, would decide how much the LPG price would be increased. He noted that the NEPC has not yet scheduled the date to discuss on the price increase.

 Metta insisted that the authorities would not mix any chemicals in LPG for non-household use. However, they would focus on the safefy campaign as well as punishments. Under consideration is whether additional laws would be imposed to prevent the shift of household gas for other purposes.