NEPC pins NGV, LPG prices until next year

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BANGKOK, 30 September 2011  – The National Energy Policy Committee (NEPC) has resolved to peg the prices of natural gas for vehicle (NGV) and liquefied petroleum gas (LPG) until next year while approving a 10-bn-THB loan for restoring the Oil Fund’s liquidity. 

After attending a meeting of the NEPC, chaired by Prime Minister Yingluck Shinawatra, Minister of Energy Pichai Naripthaphan disclosed that a decision was made to maintain the NGV price at 8.50 THB per kilogram until 15 January 2012 along with a subsidy of 2 THB per kilogram. The price will then be gradually raised by 50 satang per kilogram every month from 16 January till the end of next year. In the meantime, the Minister added that the Government would also proceed with its energy credit card policy as well as the installation of NGV engines on taxis.

As for LPG for household use, the committee agreed to freeze its price at 18.13 THB a kilo until the end of next year. The price of LPG for transport will be retained until 15 January, after which it will be increased by 75 satang a kilo until year end.

On the other hand, a collection of 1 THB per kilogram will be imposed on LPG for industrial purpose from 1 January next year onwards. The measure is aimed to increase the liquidity of the State Oil Fund with about 180 million THB more to be collected each month.

In addition, the NEPC gave a green light to the acquirement of domestic loans worth up to 10 billion THB within one year for supporting the Oil Fund. The repayment process is expected to be completed by the end of next year.