Oil prices cut, more drops this week

Oil retailers also had room to cut prices as they were enjoying marketing margins of Bt3-Bt8 per litre, he said.

Petroleum product prices are dropping by 60-80 satang per litre today, as West Texas crude slid to US$40.81 a barrel on Monday when Dubai crude was traded at $38.83.

Energy academic Thienchai Jongpipian said that due to the global economic slowdown, oil consumption next year is expected to rise by half of the normal annual increase of 1.2 million barrels a day. He is convinced that crude oil prices next year would hover at $40-$50 a barrel.

"Petrol prices are now cheaper than crude oil prices and refiners are taking losses. Though diesel remains expensive, there is a concern that once winter passes, the price could fall," he said.

Wannarat said PTT is ready to offer 95-octane petrol again to help pull down the marketing margin. Only a few retailers are stocking premium petrol for hundreds of thousand of vehicles and authorities have complained the price is too high.

The global recession would also trigger revisions to the 15-year national power development plan (PDP), he said.

"We're waiting for the exact economic forecast from the National Economic and Social Development Board. The think tank lately expects less than 1-per-cent growth, down from 3-4 per cent. Once the forecast is finalised, we will adjust the PDP to rationalise the power generating plans of both the Electricity Generating Authority of Thailand and private producers," he said.