Retail oil prices set to rise

 On Friday, Dubai crude oil stayed at US$67.40 per barrel. According to Thai Oil Plc, crude oil price could touch US$70 per barrel this week and could stay in the $65-$70 range in the near term. Factors affecting oil prices include the US new home sale data, consumer confidence index, durable goods orders, employment benefits and corporate earnings which will be released this week.

  "The marketing margin is extremely low particularly on gasohol, due to ethanol price which is as high as Bt25-Bt26 per litre against the reference price of Bt20.70," said the source.

 Energy Minister Wannarat Charn-nukul said the reference price is being adjusted. He expected ethanol price to fall when tapioca-based ethanol plants are operational.

 Bangchak Petroleum President Anusorn Sangnimnuan noted that if ethanol prices are not lower, Bangchak will not proceed with the plan to change octane-91 petrol dispensers to gasohol dispensers at additional 120 service stations. More gasohol dispensers lead to more ethanol demand and raise the operating cost.

 Prajya Phinyawat, a senior executive vice president of PTT, also noted that if ethanol prices remain high, it would block PTT's plan to expand the E20 stations. At present, PTT sells E20 at 120 stations, which serve only about 300,000 E20-compatible cars.