restructure energy prices to reflect the real costs in the global market

BANGKOK, 23 June 2011 (NNT) – Energy expert Manoon Siriwan has supported the Ministry of Energy’s move to restructure energy prices to reflect the real costs in the global market while the global oil price tends to increase further.

The energy expert said the current energy price in the world market has significantly changed. He viewed that some government policies such as the diesel and natural gas subsidy schemes are distorting the real costs of energy.

Mr Manoon, also former deputy managing director of Bangchak Petroleum, hence suggested the Ministry of Energy should review the implementation of those subsidy schemes and adjust the energy price in accordance with its real costs in the global market.

The energy expert reported that the global oil price currently hovers around 95-100 US dollars per barrel while the economic conditions of both the US and European Union (EU) have not yet improved. However, the EU summit scheduled from 23 to 24 June 2011 must be monitored in order to see if there will be any financial aid adopted to address the persisting public debt crisis in Greece.

Mr Manoon continued that results of the Federal Reserve System meeting should also be watched as it will affect the global economic and oil price movements in the latter half of this year. He noted that the oil price is likely to increase further if the production of the industrial sector keeps moving up.