The Russia-Ukraine conflict continues to be a political football as energy prices rise throughout the world.
Russia is the world’s second highest exporter of crude oil after Saudi Arabia and accounts for around 10% of global petroleum production.
International Energy Agency figures for December 2021 reveal the former Soviet state’s oil exports were 7.8 million barrels a day. But since the European Union decided to ban all oil imports from Russia because of its invasion of Ukraine, energy prices have risen throughout the world.
The Senior Executive Vice-President of Bangkok Bank, Kobsak Pootrakool, says he does not expect this to change in the next couple of years and called for the government to subsidise the rising costs of oil on consumers rather than extending the “Khon La Khrueng” co-payment subsidy scheme and the “We Travel Together” hotel subsidy scheme.
“The latest ban by the EU on most Russian oil imports will put more pressure on global energy and food prices, eventually prompting overall inflation to rise further. Global oil prices rapidly surged to US$120 per barrel and could reach US$150 soon because Russia supplies about 10% of the world’s oil consumption.”
Global fertiliser prices also increased because Russia supplies 14% of urea fertiliser. Russia, with Belarus, also supplies 41% of potash.
EU leaders agreed on Monday to cut Russian oil imports by about 90% over the next six months.
This has concerned Kobsak who is worried about the Thai farming industry as energy and crop prices keep rising. The 53 year old insists the government must support the industry to help the economy.
“The farming sector can support the Thai economy this year as it employs more than 20 million people. Farmers are expected to enjoy higher income from increasing crop prices. It is essential the government implement a policy to reduce fertiliser prices. Promoting inbound tourism needs to be to revved up, while infrastructure development has to continue.”
Source Bangkok Post
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