1,2 million vehicles use LPG

Some interesting figures about LPG usage, published by Nation.

It’s easy to set the equation of the current problem :

-explosive growth of demand (look at chart of sales)
-huge difference between local and world prices, because of the subsidy
-local production doesn’t cover consumption anymore, so imports -at high prices– are necessary

The Energy Ministry showed that during the first five months of the year, 600,000 vehicles were fitted with LPG engines. This brought the total of LPG-fuelled vehicles to 1.2 million. Demand thus rose from 47,000 tonnes a month last year to 52,000-55,000 tonnes in March.

Total LPG demand thus rose to 360,000-380,000 tonnes a month, against a production capacity of 300,000-330,000tonnes. Exacerbating the situation was PTT Aromatics and Refining’s shutdown last month of its facility for annual maintenance, cutting supply by 10,000 tonnes a month. Also, imported LPG could not reach Bangkok stations last Saturday, due to docking problems for ships transporting it from Chon Buri.

Due to subsidies, local refineries are using LPG in their operations rather than selling it cheaply, at about US$300 (Bt10,000) per tonne against the world price of nearly $900 per tonne. Rising oil prices has also sparked higher demand for LPG from motorists.

2 Responses to “1,2 million vehicles use LPG”

  1. 1 Rockderk the Great 1 July 2008 at 2:50 am

    So 1.2 million fewer cars are sucking at the petrol pumps. And the number is bound to fall further as more and more cars are converted. But what will happen tot he pump price for for gasohol 95 (which I use)? Presumably there wil be a glut and there should be a fall in price, but there won’t be because this is Thailand. Another pointless question: Why is the govt. is subsidizing something it imports -LPG- and that is dirty – LPG- while not pushing something it has in abundance -natural gas- that is a whole lot cleaner- CNG in your car ??

  2. 2 thaicrisis 1 July 2008 at 4:39 am

    -1,2 million fewer cars… sure… but do not forget that per month… we add (average) 55 000 new cars (sold) !

    -we can’t really say that there is a glut. And furthermore, prices are not set regarding the demand for petroleum products in Thailand… prices are linked to world market (and world demand).

    sales of diesel, LPG etc.

    -the thai gvt is pushing really hard to promote NGV. But it takes time (not enough NGV station, and NGV kits cost much more than LPG kits).

    -anyway, prices of LPG and NGV will increase both.
    LPG now… and NGV in december (+41 %) and 2010.

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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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