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The price will be raised Bt2 per kilogram each month until it reaches Bt24.13.

Energy Minister Wannarat Charnnukul yesterday said the date when the price increase took effect would be announced next week.

He said the state would start paying PTT next May for the cost of LPG imports for domestic consumption. He expects all of the debt to be cleared by November 2010. PTT shouldered about Bt7.2 billion from imports of LPG in April. More imports followed later in the second quarter, when motorists began turning to the cheap gas after oil prices skyrocketed.

Based on the price increase of Bt2, Bt4 and Bt6 per kilogram, the Oil Fund expects to receive higher contributions from sales of the gas, from Bt260 million in the beginning to Bt720 million.

"The price of gas for house¬hold use will be determined by the Cabinet," said Wannarat, adding that the Bt6 increase was based on an expected global price of US$700 (Bt24,500) per tonne and crudeoil price of $70 to $80 a barrel.

To reduce taxis' operating costs, the Energy Ministry has offered to modify half of the 40,000 LPGdriven taxis to be driven on natural gas for vehi¬cles (NGV). The modification will cost an estimated Bt40,000 per vehicle.

Taxi driver Vichitra Manowan said the price increase would raise her expenses by Bt150 per day. However, she said the increase was affordable and that she thus did not plan to convert to NGV, due also to the low number of NGV stations upcountry and long queues at Bangkok stations.

Energy Business Department directorgeneral Metta Banterngsook said adapting LPG intended for household use to vehicles was illegal and that if discovered, violators would be liable to 10 months' imprisonment and/or a fine of Bt100,000. In the next six months, gauges will be installed at all gascompressor plants to monitor misuse.

Thailand requires 379,000 tonnes of LPG a month, against domestic production capacity of 350,000 tonnes. Household consumption accounts for 45 per cent, industrial use 35 per cent and transport 20 per cent.

The National Energy Policy Committee yesterday also approved a cut in the import tariff cut for E85 compatible vehicles for a year, from 80 per cent to 60 per cent.

It also approved the contribution of 50 satang a litre from the sale of diesel to help finance construction of transport infrastructure. This will take effect upon approved by the National Energy Policy Council.