Thread: PM Seeks Fast Remedy To Diesel Crisis As Lorry Drivers Threaten Strike

Prime Minister Prayut Chan-o-cha said on Tuesday the Energy Ministry must speed up the launch of new measures to lower the retail price of diesel, according to his deputy Anutin Charnvirakul.


The prime minister convened an informal meeting of all of his deputies, except for Deputy Prime Minister Wissanu Krea-ngam, after Tuesday’s cabinet meeting to discuss the government’s handling of the problem of high diesel prices, which have sparked a protest by lorry drivers nationwide.


The permanent secretary for energy informed Gen Chan-o-cha that intervention measures would be rolled out early next month.


However, the premier asked that those be announced and implemented as fast as possible, said Mr Charnvirakul.


“The PM also stressed that diesel prices must be brought lower than 30 baht per litre,” said Mr Charnvirakul after the meeting.


The move indicates a compromise may be sought after the government refused earlier to cave to lorry operators’ demand that the price of diesel be reduced to 25 baht a litre and pegged at that rate for a year.


The Land Transport Federation of Thailand (LTFT) has repeatedly pressured the government to meet the demand or face a large-scale lorry driver strike on 1st December.


Last week, truckers drove in convoys to the Ministry of Energy to press their case.


On Tuesday, Energy Minister Supattanapong Punmeechaow said it would be impossible to lower the diesel price that much even though it has already fallen below 30 baht per litre. The government will keep paying subsidies of 2 baht per litre as prices in the world market continue to drop, he said.


As of Tuesday, the average price of diesel nationwide was 28 baht per litre. PTT Plc is expected to announce today that it will lower the price further and other companies are likely to follow suit, Mr Punmeechaow said.


The government has set aside 20 billion baht to subsidise the price for a period of four to five months and capping it at 25 baht per litre would require about 500 million baht per day or up to 15 billion baht per month, he said.


Diesel prices globally have dropped considerably after the United States, China, India, Japan and a number of other large countries began releasing their strategic petroleum reserves in lieu of importing oil, he said.


The measure taken by these nations as they battle for control of the global energy market spelt good news for oil-consuming countries like Thailand but has frustrated the Organization of the Petroleum Exporting Countries (Opec), he said.


The outcome of an Opec meeting set for 4th December will determine the fate of global oil prices, he said.


PM Seeks Fast Remedy To Diesel Crisis As Lorry Drivers Threaten Strike | Chiang Mai News - Daily News Stories From Chiang Mai & Thailand

Thailand to produce only B7 diesel fuel until next March to reduce diesel prices

Thailand’s Energy Policy and Planning office (EPPO) decided today (Wednesday) to instruct oil refineries to produce just one type of diesel fuel (B7), from December until next March, to lower the price to around 28 baht/litre, and oil traders to maintain the marketing fee at 1.40 baht/litre. The measures are to ease the impact on truck operators as oil prices rise globally.


EPPO Director-General Wattanapong Kurovat, said today that the committee, chaired by Energy Minister Supattanapong Punmeechaow, also decided the retail price at pump will remain at no more than 30 baht/litre.


B7 diesel fuel is mixed with only 7% bio-diesel or palm oil. Currently, there are three types of diesel fuel, B7, B10 and B20, but B7 is the most popular among truckers.


Wattanapong explained that the Oil Fund’s contribution to the diesel fund, coupled with the capping of the marketing fee will help reduce the price of diesel at the petrol station.


He pointed out that the reduction in the proportion of biodiesel in diesel fuel is due to increasing prices of palm oil, currently estimated at 46.88 baht/litre, which will raise the price of diesel by 1-2 baht/litre.


With lower biodiesel content, the B7 price can be reduced by around 50-80 satang per litre. Subsidies from the Oil Fund will also be cut about 4 billion baht to 3.8 billion baht per month.


Wattanapong said that all parties were consulted before the Energy Police Administration Committee arrived at the decision today, adding that the committee will explore means to help affected refiners.


Truckers, from the Land Transport Federation of Thailand, are demanding that the price of diesel fuel be capped at 25 baht/litre, otherwise they may have to increase cargo transport charges.


Thailand to produce only B7 diesel fuel until next March to reduce diesel prices | Thai PBS World : The latest Thai news in English, News Headlines, World News and News Broadcasts in both Thai and English. We bring Thailand to the world

Thai Government Announces Cap on Diesel Prices Till March 2022

The government of Thailand announced plans to cap the price of diesel at 28 baht per liter from December to March by limiting the amount of biodiesel in fuel.


On Wednesday, the Energy Policy Administration Committee (EPAC) approved limiting methyl ester (ME), also known as biodiesel, in high-speed diesel to 7% (B7 diesel), and suspending the production of 10% (B10) and 20% (B20).

In Bangkok and the surrounding area on Wednesday, the reference price for ME was 46.88 baht per liter and the pump price for B7 diesel was 28.84 baht.


Director-general of the Energy Policy and Planning Office Wattanapong Kurovat said retail diesel prices in Greater Bangkok will be limited to 28 baht per liter as a result of the move.


Truck operators and private sector members are in agreement with this, he said.

For the next year, truck operators have been campaigning for a 25-baht-per-liter cap on diesel prices.


Energy Minister Supattanapong Punmeechaow also proposed limiting oil traders’ profit margin to 1.4 baht per liter, down from 1.8-2.0 baht per liter.


In response to recent rallies and demands by the Land Transport Federation of Thailand to keep diesel prices low, and threats to hike freight rates by 10% as of Dec 1, the decision was made.


Prayut Chan-o-cha, the prime minister and defense minister, previously told the armed forces to prepare trucks to transport freight in case haulers went on strike.

Thai Government Announces Cap on Diesel Prices Till March 2022 - News