Abhisit opens the subsidies Lala circus : 48 billions THB worth of fossil fuels to be burned

Done. Abhisit has totally embraced the subsidy logic. The same that Thaksin and Samak used before. For that matter, the current PM is as short sighted as his predecessors… as populist… as full of dirty tricks from the political backroom… as weak… as -let’s speak frankly- dumb as them.

Does Abhisit think seriously that this costly package will change the economy ? Will make the people to love him ? Will allow him to win an election (which he NEVER did) ? Sure he does. But he’s wrong.

The economic crisis will be his Nemesis. Burning cash to burn fossil fuels and meanwhile speaking about “recovery” is just a pathetic move from a meek politician, afraid of his own shadow, who is falling day after day deep into an ocean of ridicule (read here for his latest grotesque mistake).

The government yesterday approved a Bt48-billion energy-subsidy package to lower retail prices of diesel and other types of energy in a bid to win wider public support. […]

The move is aimed at helping ease people’s cost-of-living burden and fuel economic activity during this critical juncture, it said.

-The price of B5 biodiesel will also be reduced by 81 satang a litre, in order to promote the use of this alternative fuel, costing the government Bt421 million a month.

-Second, the government will spend Bt740 million a month over the next year to subsidise LPG, which is imported at Bt25.73 a kilogram but resold domestically at only Bt18.13.

-Third, the government will spend Bt300 million a month to subsidise CNG for another year.

-Fourth, the government will spend Bt1.2 billion over four months to subsidise 30,000 taxis that want to convert to running on NGV. Altogether, the four measures will cost the government Bt27.5 billion.

-Fifth, the government will use Bt10 billion to subsidise the FT surcharge on electric bills.

The government already owes Bt20 billion to Egat for keeping the FT below the agency’s cost, and the year’s extension will add Bt10 billion to the state’s outstanding debt to it. (Nation)

4 Responses to “Abhisit opens the subsidies Lala circus : 48 billions THB worth of fossil fuels to be burned”

  1. 1 Pricilla 11 August 2009 at 5:49 pm

    One trap democracies can fall into is spending money to win votes, and they all do it. Unfortunately it reaches a point eventually that governments spend ridiculously trying to please every interest group and then increase the bureaucracy to administer it. That of course either redirects resources from the productive side of the economy or creates deficits, both of which are bad economic options for the country.

  2. 2 fall 11 August 2009 at 7:44 pm

    Sound more like EGAT subsidizing bill to me…
    Surely, there is a better use for such money? May be on something less important like Health care and Education?

  3. 3 David Brown 11 August 2009 at 8:30 pm

    incredibly against the worlds attempts to combat climate change

    the opposite of preparing Thailand for a successful future

    whose short term financial gain is being supported by these moves?

    have the Burmese generals asked Thailand to purchase additional oil and gas to subsidise their victory in the upcoming “democratic” elections?

  4. 4 W W 12 August 2009 at 11:51 am

    Leadership mean making hard, sometime painful but necessary decisions for the future of the country. These clowns show they just don’t care or don’t have the gut to persuade people to do the right things.

    Abhisit is “Change” but changes to the old regime/habits to cling on to power/money for themselves. What’s a waste 3 years!!

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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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