Energy expert says cuts to Oil Fund too soon

BANGKOK, 8 August 2009 (NNT) – An energy expert has pointed out that the Government’s plan to reduce contributions to the Oil Fund is too soon. They said the contribution rate needed to be maintained to offset losses projected for the end of the year.

Energy Expert Manoon Siriwan said the global fuel price was likely to reach as high as 80 or 90 USD per barrel by the latter end of the year. He added that recovery signs should also be incentive to maintain the contribution rate for the Oil Fund as the money would be useful in the future. He remarked that if the Government saw its cut as necessary, it should limit the decrease to only 50 Satang to 1 baht a liter, not the expected 2 baht per liter as that would mean 1.8 billion baht would be lost from the fund monthly.

Mr Manoon further noted that indicators had shown the potential for the global oil price to drop another 4 or 5 USD.