IEA advises that Thailand drops its subsidy policy for NGV to save money

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BANGKOK, 4 May 2011 -Aad van Bohemen, Head of the IEA Emergency Policy Division suggests that Thailand end its price pegging policy for fuel especially NGV in order to refill the Oil Fund. 

Mr. Bohemen said by attempting to keep the prices for both LPG and NGV down, the natural gas sold in Thailand failed to reflect the global energy prices. Instead of diverting people away from relying heavily on natural gas, cheap prices will result in higher demands.

Mr. Bohemen further explained that Thailand wouold end up paying a large amount of money each year for the import of natural gas while having to subsidize the price to make it affordable for commuters.

He added that Thailand would be better off spending subsidy money on building storage tanks to contain oil for future crisis. He also said that Thailand should depend on other energy resources other than natural gas in producing electricity.