Oil crisis : trucks operators threaten to stop services nationwide

The Land Transport Federation of Thailand is threatening to halt freight forwarding services nationwide unless it receives a clear response — within seven days — that state assistance to counter the financial hardships borne by operators from surging oil prices will materialise.

Federation chairman Yu Jienyuenyongpong, flanked by representatives of transport operators in various sectors said in a press conference Wednesday that the continued increase in diesel prices had considerably pushed up the overhead costs of transport truck operators considerably.

The transport of building materials took the heaviest toll since product prices are low while fuel cost had risen by up to 75 per cent.

Mr. Yu said that transport of farm products had begun to decline because the harvesting season had gone by. Even so, fuel costs had increased by 60 per cent.

In the past, the operators were allowed to raise the transport cost by 3 per cent every time diesel price edged up by one baht.

But the continued rise in transport costs had reduced the number of customers seeking the services. It resulted in many operators stopping services and selling off 4,000-5,000 trucks.

To ease the hardship of the operators, he said the federation is calling on government to provide fuel at a special discount for the land transport sector, offer a securitisation plan so that operators could afford the natural gas for vehicles (NGV) kit installation, support soft loans with interest lower than 0.5 per cent per annum, and reducing the tax on new trucks with NGV engines to 10 per cent. (TNA)

The little pathetic game of cat and mouse continues…

The government puts its head deep into the sand… On the other hand, all corporations start to ask for “state help”.

Last week, it was the private bus companies… The taxis drivers… The boat operators… The sugar cane farmers… So now, it’s the trucks companies. Tomorrow… who knows ?

What will happen ? Probably the same… short term subsidies… 😉

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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