Thailand: 10-month freeze for LPG prices

Thailand: 10-month freeze for LPG prices

The Energy Ministry yesterday agreed to fix the retail price of liquefied
petroleum gas (LPG) at 20.29 baht a kilogramme for 10 months.

Production costs began rising more than a month ago.

Director-general Twarath Sutabutr said the LPG monthly reference price for
November rose by US$15 a tonne from $410 a tonne last month.

The rise in global prices has also pushed up the cost for cooking gas
retailers accordingly.

"The rise of $15 a tonne is costing retailers more, at 65.21 satang per
kilogramme," Mr Twarath said.

The Energy Policy Administrative committee, however, agreed yesterday to
subsidise the additional cost for consumers, meaning that the retail LPG
price will remain steady at 20.29 baht for the next 10 months.

"Instead of allowing the retail price to rise in line with the cost, the
government decided to absorb the increase of 65.21 per kilogramme," Mr
Twarath said.

The measure is aimed at helping relieve the burden for consumers during the
domestic economy's fragile recovery, he said.

The subsidy will cost the state Oil Fund approximately 100 million baht a
month.

Currently, the state Oil Fund's available cash amounts to 34 billion baht.

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Link to Original Article:
http://www.bangkokpost.com/news/general/1129653/10-month-freeze-for-lpg-pric
es

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com