Reduce subsidy for LPG consumed

BANGKOK, 10 January 2011 (NNT) – The PTT agrees with the government’s announced plan to reduce subsidy for LPG consumed in the industry sector, saying the move will yield better outcome in the long run.

Under the proposed 9-point populist policy, the subsidy of LPG to the industrial and manufacture sectors will be reduced. PTT executive vice president for natural gas for vehicles (NGV) Nuttachart Charuchinda said the government’s proposal would allow market mechanism to determine the prices for LPG. According to him, the world’s economic leaders, G20, have recently agreed to reduce the subsidy for energy, LPG in particular; given it has long encouraged people to use vehicles driven by LPG.

With the Energy Ministry’s move to allow LPG wholesale price increase, Mr Nuttachart believed the decision would be an incentive for refineries to produce more LPG, reducing the country’s import of LPG, which is expected to hit 150,000 a month this year.

As for the NGV, the executive vice president has proposed that the Energy Ministry increase the price from 8.50 baht to 10.50 baht per kilo, enabling the giant conglomerate to have the income needed to expand its NGV business.