FT rise likely to be only 15 satang

The October-January power tariff is expected to go up 15 satang a unit. The new fuel tariff will be posted on the Energy Policy and Planning Office's website for public comment and go into effect five days later.

Direk Lawansiri, chairman of the Energy Regulatory Commission, said yesterday the rest of the FT (fuel tariff) increase would be introduced in steps between February 2009 and January 2010.

The price of natural gas will hopefully fall during that period, in line with the recent decline in oil prices, he said. It usually takes six months for gas prices to catch up to oil prices.

An Energy Ministry source said the fuel factor for the upcoming period should have risen by 50 satang per unit, but the regulator was concerned about the impact.

The hike was reduced by 11 satang per unit with help from the Bt3.6-billion PTT take-or-pay gas contract. A total of 24 satang a unit would then be factored into the FT in the four subsequent periods. That left only 15 satang to be borne by users in October-January.

US crude oil on Wednesday spiked US$6 (Bt205) per barrel, but refiners are cutting pump prices today by 60 satang per litre for all products.

Viraphol Jirapraditkul, director-general of the Energy Policy and Planning Office, expects oil prices to ease to $80 to $90 per barrel thanks mainly to lower demand.

Despite higher prices, the office found that petrol consumption had remained steady, while diesel consumption rose slightly from 42 million litres last year to 44 million litres. As part of the government's energy-saving campaign, the Energy Ministry will open two park-and-ride lots near the Queen Sirikit National Convention Centre and the Thailand Cultural Centre.