Academic says LPG price hike in line with market mechanism


BANGKOK, 3 September 2013 Director of the Center for Economic and Business Forecasting Thanawat Polwichai has voiced support for the government’s increase of utility prices, saying he believes that people will be able to adjust themselves to the increasing cost of living. 

Mr Thanawat was on Tuesday invited by a Senate committee to provide information concerning the cooking gas price increase effective since 1 September 2013. The academic said the price hike was necessary as the previous LPG price in Thailand was lower than the market price by six baht. The price hike would make farmers change the way they cultivate crops by using alternative energies more.

As for the increasing prices of electricity and tollway fee, the director said they suited the economic condition at present and the public would eventually adapt to the higher living expenses.

Mr Thanawat also expressed his confidence that the Thai economic growth would reach 4.5% as previously forecast as the global economy was improving.