PTT says petrol prices will increase next year

BANGKOK, 29 December 2010 (NNT) – PTT Plc has disclosed that consumers will next year have to pay more at the pump should the state-owned company be required to continue subsidizing the price of LPG.

According to PTT’s CEO Prasert Boonsampan, the company will not raise gasoline price this week providing that the price of crude in the global market does not hit 100 dollars a barrel. The CEO expected the average price of crude next year to be between 85 to 90 dollars a barrel, increasing from this year’s average of 78 dollars.

Concerning the LPG price, Mr Prasert voiced his concern that if the government kept distorting the price, keeping it lower than it should be through subsidization, the demand for the liquid gas could increase by over 100 percent in 2011.

The government has so far spent over 20 billion from the Energy Fund subsidizing the price of LPG; if left untouched, this will create long-term effect for the giant company and the country as well. He, however, added that the company would be willing to abide by the government’s decision if the latter opted to continue having it pay part of the LPG cost.

On the contrary, Energy Minister Dr. Wannarat Channukul has just said the amount of LPG imported next year would decline, given the price of LPG at refineries has been floated; a shift from the 330 US dollars per ton ceiling previously set by the government. The shift will attract more LPG from local sources, resulting in a decrease in the demand for the imported gas.