As Thailand’s fuel prices spike, stockpile raised

As Thailand’s fuel prices continue to spike, officials have announced that the government will extend fuel stockpiling. Thailand’s Deputy PM and Energy Minister said in a meeting yesterday that the government has instructed oil companies to extend stockpiling of oil reserves from 60 to 70 days to help defuse a pending crisis.

He said Thailand will keep its policy of capping domestic diesel prices at 30 baht per litre, using subsidies from the Oil Fund. The cabinet recently approved barrowing an additional 30 billion baht from the fund, from a cap of 40 billion baht to deal with the rising price. The minister added that the decision to cut taxes on diesel and bunker oil used to generate electricity is meant to help lower electricity bills. He said energy reserves will be slowly raised until the target is met.

The ongoing spike in fuel prices has taken a toll on many of Thailand’s industries. On Wednesday, the CEO of a speedboat tour company told The Phuket News the surge in price had hit her business hard. She begged the government to prevent prices from rising more, or to at least help businesses with rising costs. Even though oil prices have jumped, the company can’t raise service prices as it will deter tourists from buying them.

“Please prevent further rises in the price of fuel from getting any higher so that marine operators who are directly affected can continue to operate”.

SOURCE: Bangkok Post