Truckers in northeast Thailand call for diesel price cuts

Truckers in northeast Thailand are urging the government to either lower diesel prices or increase cargo transport fees to offset rising energy costs, ensuring their trucks remain operational.

Wichai Sawangkhachon, President of the Northern Transport Association (NTA), reported that nearly half of the over 10,000 trucks owned by approximately 700 cargo transport businesses under the NTA are currently out of service. According to Wichai, around 3,000 of these unused trucks have been repossessed by vehicle finance companies due to unpaid loans.

The primary issues causing this predicament are surging diesel prices and a drop in demand for truck transport services.

Somphon Hirunyasut, President of the Northeastern Service Union Transport, highlighted that many operators are unable to sustain their businesses due to escalating losses, leading to closures. This trend, initially triggered by the economic impacts of the Covid-19 pandemic, has worsened with increasing costs.

Diesel prices in neighbouring Laos are about 3.7 baht per litre lower than in Thailand, while truck head prices in Vietnam are roughly half of those in Thailand.

Compounding the problem, a free trade agreement between Thailand and China will grant a tax waiver to Chinese truck transport operators, which could further deteriorate the situation, reported Bangkok Post.

“Many Chinese truck operators already dominate in Thailand’s neighbouring countries, and this agreement will make it easier for them to attract customers here.”

In related news, Bangchak Corporation announced a significant price reduction on its high-premium fuel types, offering a discount of 5 baht per litre nationwide until July 20. This promotion includes both Bangchak Hi Premium 97 and Bangchak Hi Premium Diesel S, with no minimum purchase required.

In other news, a young girl was abandoned at a petrol station in Buriram by her uncle who journeyed more than 400 kilometres to Bangkok. The six year old was found in a distressed state and was initially too scared to cooperate with rescuers.