LPG : imports double in june… and subsidy increases (+150 %)

LPG is victim of its success… This fuel was promoted by the thai authorities as a cheap alternative to gasoline… because Thailand produces LPG. Furthermore, the retail prices were subsidized.

Year after year, and even more now with the record gasoline prices… the demand increased non stop (look here the chart) To the point that the country needs now to import !

The game changes because LPG prices on the world market are of course higher than in Thailand [“about Bt40 per kilogramme in the world market and in Thailand at Bt18.13 kg” ! (TNA)]… So the trap is closing. This is why, since a few months, the government wants to curb LPG usage, and promote instead NGV (natural gas).

The Ministry of Energy will import 40,000 tonnes of liquefied petroleum gas (LPG) this month following the continuously increasing demand.

Director-General of the Department of Energy Business, Metta Banturngsuk says the department decided to import the gas as it predicted that demand for LPG would rise.

The import of LPG of 40,000 tonnes, estimated at 36 million USD, is higher than LPG imported in April this year by two times.

However, the import of LPG this month prompts the government to increase a subsidy for PTT Plc from 320 million baht to 700-800 million baht a month [that’s a 150 % increase !]. (PRD)

So the government has to increase the subsidy given to PTT…

But, watch out, it’s now sure, LPG prices (for cars) will increase in july.

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