PTT rakes up Bt1 bn in oil business loss

[Mid]

PTT rakes up Bt1 bn in oil business loss
Friday, March 14, 2008

PTT Plc has shouldered a loss of over Bt1 billion from the retail oil business since February, as it has tried to delay the price hikes on the back of appreciation in global oil prices.

PTT President Prasert Bunsumpun said that so far, profits from other businesses have been used to subsidise the loss. In the next 1-2 days, diesel price could be jacked up, despite the government's subsidy of 90 satang per litre. The increase of 40-50 satang is anticipated, which would maintain the gap of retail diesel prices at PTT stations and those of other retailers.

Cheaper diesel has attracted motorists to PTT service stations. From the sale of 15 million litres a day, the volume rose 20 million litres a day. This resulted in lower inventories and PTT would soon ask the Energy Ministry to relax the compulsory inventories to ease the shortage. At present, oil retailers must stock up 5 per cent of total sale volume, which should be sufficient for 18-day sale. PTT wants the compulsory reserve period temporarily cut to 10 days.

Energy Minister Poonpirom Liptapanlop noted that the National Energy Policy Committee may call an urgent meeting to ease the rapid hikes in diesel prices.

thailandoutlook.com

[chinthee]

Yup, you can't hide the inevitable forever. Price hikes will be coming, and maybe the car makers have been helping PTT and others forestall this in order not to suffer drastically reduced auto sales.

[bkkandrew]

Again, another Thai achievement - the only oil company in the world to make a loss during a period of record oil prices. Amazing Thailand!