Economy August 07, 2014 01:00


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In order to balance the country’s fuel-price structure, the state should spend its budget on energy subsidy only for lower-income earners, and not rely on the Oil Fund to finance any subsidy, the Petroleum Institute of Thailand suggested yesterday.

Speaking at a seminar on the balance of prices between petrol and natural gas used in the transportation sector, executive director Siri Jirapongphan said fuel prices should also be in line with world market prices.

While subsidy would remain, it should only be for helping low-income people. Funding resources should be from the state’s budget spending, and not from the Oil Fund, which collects contributions from oil consumption, he said.

This is aimed at protecting fuel prices from distortion and the Oil Fund could consequently be used to achieve fuel-price stability, he added.

According to a survey by the institute, the fuel-price structure used for the transportation sector is not in line with the efficiency of each fuel type.

In addition, the structure should not only take fuel costs into account, but efficiency of fuel usage or the heating value of fuel, said Siri.

If based on gasohol 95 at Bt40.23 a litre, the diesel price should be Bt45.44 a litre, he said.

The price of diesel is currently Bt29.99 per litre.



Cable operator CTH and the country’s second-largest mobile-phone operator, Total Access Communication (DTAC), have partnered to allow the latter’s customers to subscribe to a CTH-DTAC bundled package.

Pakorn Pannachet, senior vice president and head of the marketing division of DTAC, yesterday said the partnership would become a new value-added service as part of the company’s plan to seek more revenue from non-core services.

For DTAC subscribers, the monthly payment package starts from Bt499, while it is Bt1,299 per month for new CTH subscribers. There are also free data packages ranging from 1.5GHz to 3GHz.

The services will commence next week.

 DTAC has 28 million mobile-phone users.

The partnership is also aimed at solving problems involving CTH’s reportedly poor billing system.

By the end of the year, CTH expects to have lured more than 3.8 million new customers through its own distribution channels and its business partners in various sectors ranging from cable, satellite TV, iPTV and mobile to Web-based portals.



RS targets sales of 500,000 of its new-model satellite-TV boxes bundled with live telecasts of English Premier League matches in the upcoming season, after joining forces with rights-holder CTH.

Chief operating officer Pornpan Techarungchaikul said RS had joined hands with leading pay-TV operator CTH, which holds the Thai broadcasting rights to live telecasts of all 380 EPL matches during the new season.

Sport content will be bundled with a new model of the RS Sunbox, with expected sales generating revenue of at least Bt795 million during the season, which kicks off on August 16, she said.