Friday, the retail price of cooking gas (LPG) will increase by 15 THB per standard 15 kilos cylinder.
This is due to the end of the subsidy (from the Oil Fund).
And then in january, the retail price will increase again by 15 THB, when the companies like PTT will ctu their own subsidies.
It means that by the end of of january, a standard 15 kilos cylinder will cost 282 THB (compare to 252 THB now).
That’s a total of 12 % increase (Bangkok Post).
“Households account for 55 per cent of total LPG [liquid petroleum gas] consumption, while taxis make up 25 per cent and industry the remaining 20 per cent.” (Nation)
With increase LPG usage for automobile instead of household, of course the price will increase.
But I disagree that household MUST foot the bill for increasing price due to consumption as driving fuel.
Think of it this way, if one day rice can be use to fuel car and rice price shot up 30%. The farmer would celebrate, but people would take to the street.
Not only Fall…
Of course the price increase because the demand explodes (because of LPG for cars).
However, do not forget that the price of LPG on the world market, follow the same pattern than crude oil…
Therefore, there is no escape : households AND drivers have to pay.
And the time of subsidies are over (as we can start to see in Thailand). Not because our dear politicians are not willing to please us… but because subsidies are juts to costly now !
I think it’s about time that Thais learn that they must start paying more for things. I think that Thais have had it too easy and they haven’t realized the “real cost” of things for a long time as the government has “helped” in keeping the lid on prices from everything from LPG to Mama Noodles. When we talk about LPG it has led to a booming smuggling business as a result.
The question now is will the next government bring back the subsidies?