BANGKOK, 28 March 2011 (NNT) – Bangchak Petroleum Plc has issued confirmation that there will not be any oil price increase this week, citing the weakening price of biodiesel B100 and a looming end to Libya’s political unrest.
Bangchak President Anusorn Saengnimnuan forecast a relatively stable oil price this week with a tendency to decline, provided that political heat in Libya eases off. Personally, he believed that the Western coalition forces would successfully seize areas under the control of Libyan dictator Moammar Ghadafi and eventually topple his regime while the chaos was unlikely to spread to nearby oil powerhouse Saudi Arabia.
Although Libya’s situation remained uncertain, Mr Anusorn assured that no significant changes would yet be seen in the oil price, thanks to the lowering of the price of biodiesel B100, which had helped cut the production cost of diesel and allow the marketing margin to touch 1 THB per liter. He added that Bangchak would continue to peg the retail price of diesel under 30 THB per liter in compliance with the Government’s policy until the end of April, after which the price would be floated to correspond with the global rate.