Gasoline, secret subsidy : PTT looses 95 millions THB per day

Deputy Managing Director of Ptt Public Limited Company Chaiwat Choorit pointed out that the current retail prices of Benzene and Diesel are still unable to cover their real costs.

Chaiwat added that people should help by reducing their energy consumption as domestic retail oil prices could hike up next week, following the pressure from the world market.

He also said that the PTT’s attempt to delay its hike of retail oil prices has caused the company to suffer a negative marginal cost of almost 4 baht per liter.

This means that the company needs to shoulder 95 million baht of loss per day. (TOC)

It’s astonishing. In 2007, PTT “lost approximately three billion to 4.5 billion baht” fooling around with gasoline market… But now, on a base of 95 millions per day, that would be a loss of 2,8 billions per month… and 33 billions per year !

[disclaimer : don’t forget the golden rule in Thailand : figures are… figures… Misunderstanding from the reporter, bad communication from the company, mistakes… everything is possible]

What Chaiwat is saying is scary : it means that gasoline should cost 4 THB more per liter (around +15%) ! Right now.

Actually, PTT complains… since a long time (read here and there).

The problem is that… its main shareholder is… the thai state. The political pressures are obvious. And as usual, totally counter-productive.

The gvt was thinking : “it’s a temporary problem, therefore we can make PTT wait, to subsidize the market, quietly“.

Unfortunatly, prices stay high. And will stay high. Check mate.

Let’s have a compassionate thought for the private shareholders of PTT, this beautiful “blue chip” like they say… 😉

The thai state is stealing from them. Nothing less, nothing more.

The government must stop this stupid and secret subsidy of the gasoline market .This sneaky thai way is really annoying.

If they want to subsidize, fair enough, but then they must speak clear and loud.

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