Energy Minister expects retail fuel prices to surpass Bt30 per liter

BANGKOK, June 19 (TNA) – Energy Minister Viset Choopiban on Sunday projected that retail fuel prices on the domestic market might further increase and surpass 30 baht per liter since global fuel prices continue to rise.

He said the government is not in a position to rein in the fuel prices. What it could do is to allow them to move by the market mechanism.

Oil prices on the world market have continued to increase because of mounting violence in the Middle East and imminent hurricane threat.

Under the circumstance, he cautioned, the local retail prices might further rise and eventually stay above 30 baht per liter.

However, he said, the ministry would accelerate promoting the consumption of alternative energy, especially natural gas for vehicles (NGV).

He admitted that the number of vehicles installed with NGV equipment at present remains below the target.

But he believed the establishment of more petrol service stations with NGV in the next 1-2 months would help draw a larger number of interested investors.

He said PTT Public Company Limited (PTT) would increase a marketing margin of NGV to 1.50-1.80 baht per kilogram, from 0.50 baht per kilogram, since some service stations in provincial areas needs to bear higher transport costs.

The minister said he agreed with an approach to allowing PTT to set aside 7 billion baht from the State Oil Fund for loans to vehicle owners who want to install NGV equipment by themselves because commercial banks had offered strict lending terms and conditions.

TNA