PTT will not pose price hikes on lubricant oil

BANGKOK, 19 February 2010 (NNT) – The Petroleum Authority of Thailand (PTT) will not propose a price increase in lubricants if the price of crude oil does not exceed 80 USD/barrel, according to the Manager of the Lubricant Division of PTT, Ratdej Kemthong.

Mr Ratdej said from the prospects of economic recovery, the sales of lubricants were expected to increase by 3% from last year’s negative growth of 10%. As for the company’s new products this year, the manager said they would revolve around energy conservation.

The PTT said it would continue focusing on exporting this year, taking advantage of the 0% tariff from the ASEAN Free Trade Area (AFTA) agreement with China. The agreement is hoped to help raise PTT’s export sales from seven million to 10 million liters.

China has a high potential with its lubricant market increasing no less than 10% each year, said Mr Ratdej. For its exports to China, the PTT will target big cities and premium market. If exports to China stand at no less than one million liters of lubricants, PTT will consider establishing a lubricant factory there.

Securing first place for two consecutive years, PTT has captured 22.75% of the market share, with sales of 113 million liters. Currently, the company exports to countries such as European, Taiwan, Hong Kong, China, Pakistan, Myanmar, the Philippines and Indochina.