Oil price cut helps boost economy

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BANGKOK, Aug 29 — The oil price cut effective today, will help spur Thailand’s national economy due to increased public purchasing power, bankers and senior business managers said.

Kesara Manchusree, president of the Stock Exchange of Thailand, said that Thursday’s decision by the National Council for Peace and Order (NCPO) to reduce fuel prices would assist the national economy as every sector would see energy costs declined and this would in  the end boost the country’s competitiveness.

Bank of Thailand spokesman Chirathep Senivongs Na Ayudhya said the decline in gasoline retail prices would slightly affect inflation but not core inflation and does not pose much significance to the economy because it is necessary commodity.

The cut in retail fuel prices would, however, boost the public’s purchasing power.

Smith Banomyong, president of SCB Asset Management, voiced agreement, saying that the NCPO oil price cut would be positive as it would lower operational costs of all production  n the country.

Motorists in several provinces are seen lining in long queue to fill up oil tanks of their cars since early this morning, especially those using gasoline and gasohol.

Those using diesel did not do so because diesel price rose slightly, but still below Bt30 per litre as NCPO wanted to help the transportation sector.

Yesterday the NCPO cut gasoline and gasohol prices  in an attempt to lower the cost of living and to reflect the real retail prices of fuel.