Energy Policy Committee extends Subsidies to freeze cooking LPG prices
31-7-2019— Today at the press conference after the meeting of the Energy Policy Administration Committee chair by Mr. Sithirat Sondhichirawong, Minister of Energy, who unveiled that the meeting today considered the guidelines for promoting the use of diesel B20 fuel allows car users to be more confident and turn to use diesel B20 more.
Department of Energy Business Requesting cooperation from PTT to extend the period of support for the mitigation project by extending the period of assistance to the groups in the project for another two(2) months from August – September 2019 and request to extend 60 million baht additional subsidy limit. The status of the fuel fund is remain within the ceiling of compensation for LPG price not exceeding 7 billion baht.
Since the Ministry of Energy has promoted the sale of high speed diesel oil B20 to reduce the cost of living of people from transportation services as well as to overcome the oversupply of palm oil and build oil palm stability which has been carried out since 8 June 2018 until the present.
The resolution of the Royal Thai Government has given special discounts, causing the different of the diesel retail price between B20 and B7 increased to 5 baht per liter since 1st Dec 2018 when diesel oil B20 can be sold at service stations in general and have announced the car models that support diesel use B20 allows car users to be more confident and turn to use B20 diesel fuel to grow more leapfrog.
By the date of July 21, 2019, there are 13 oil traders in accordance with Article 7 selling Diesel B20, which accounted to 1,181 service stations, which 532 stations is selling for fleet.
Promotion of diesel oil B20, with a retail price of B20 is 5 baht lower than B7, resulting the use of B20 from an average of 0.030 million liters per day in July 2018 was raised to average of 5.067 million liters per day.
Currently, the B100 biodiesel segment was increased from an average of 4.103 million liters per day in July 2018 to an average of 5.215 million liters per day at present, as the current situation CPO prices have started to decline from 21.87 baht per kilogram in early July 2019 to 16.75 baht per kilogram on 26 July 2019.
Therefore, to reduce the cost of living of people resolve the oversupply of palm oil and build oil palm stability and promoting the sale of B20diesel fuel.
Therefore the committee has resolved to extend the period to keep the B20 diesel retail prices at5 baht per liter lower than ordinary diesel oil (B7), for another next 2 months, from the end of July (31), 2019 to the end of September (30), 2019.The maintaining compensation rate of B20 diesel fuel is at 4.50 baht per liter.
To alleviate suffering and help low-income earners, the Energy Policy committee assigned Department of Energy Business requesting cooperation from PTT to extend the period of support for the mitigation project by extending the period of assistance to groups in the project for two(2) months from Aug-Sep 2019 to freeze the LPG retail price (liquefied petroleum gas) for the household sector (Shop group, hawker and food stall.) and request to expand 60 million baht more for the additional limit.
Fuel Fund Status still remain within the ceiling of compensation for LPG price not exceeding 7 billion baht. As of July 28, 2019, the net position of the fuel fund is 36.742 billion baht (Oil accounts is 42.994 billion baht and LPG accounts is 6.252 billion baht.)Forecast at the end of July 2019, the position of the LPG Group will be minus 6.324 billion baht and will be minus 6.090 billion baht at the end of August 2019. Therefore, has no need to expand the ceiling limit to use the oil fund to stabilize LPG prices.
