Energy Ministry to form new oil price structure to cope with global market fluctuations

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Energy Minister Pirapan Salirathavibhaga said two major challenges currently impacting energy prices include structural issues within the pricing system itself and a longstanding system that has not been optimized to benefit the public effectively.

The Energy Ministry is reportedly developing a new oil price structure that would allow the government to set local retail oil prices independently of global market fluctuations, a shift from the existing system, which has remained unchanged for 51 years.

Energy Minister Pirapan Salirathavibhaga said two major challenges currently impacting energy prices include structural issues within the pricing system itself and a longstanding system that has not been optimized to benefit the public effectively. One other key factor driving up retail diesel prices is the rising excise tax determined by the Oil Fuel Fund Committee.



In response to these challenges, Pirapan said he is in the process of drafting new legislation aimed at restructuring the pricing system and allowing the government to have control over retail prices instead of being influenced by international benchmarks.

Pirapan affirmed that the proposed change intends to enhance transparency and control by requiring oil distributors to report their costs to the National Energy Policy Committee. He noted, however, that the adjustment to the new system must be done gradually to ensure stability and fairness in the transition. (NNT)