LPG and NGV prices adjusted to reflect their actual costs

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BANGKOK, 1 October 2014  The Energy Policy Management Committee (EPMC) gave the green light to raise the prices of liquefied petroleum gas (LPG) and natural gases for vehicles (NGV).

Permanent Secretary for Energy Areepong Bhoocha-oom stated that LPG prices in the transport sector will increase by 0.62 baht per kilogram, from 21.38 baht to 22 baht a kilogram. The prices of NGV will also go up by 1 baht per kilogram, from 10.50 baht to 11.50 baht.

Public transport vehicles, however, will be allowed to pay for the old NGV price of 8.50 baht per kilogram through the use of an energy credit card granted from the previous government.

According to Mr. Areepong, the price adjustment for both of these natural gases is to reflect their actual costs in the market and to prevent any misuse of LPG and NGV. He also said that the adjustment is to reduce the burden of the Oil Fund from having to shoulder the costs of LPG and NGV.

Meanwhile, the EPMC has increased the levy paid on diesel to the Oil Fund by 40 satang per litre, from 1.70 baht originally to 2.10 baht per liter. However, the pump prices of the diesel fuel would remain relatively unchanged.

The move is expected to boost the earnings of the Oil Fund and reduce the deficit of the fund which is about 4 billion baht in the red. It is expected that the increase in the levy would bring the fund’s earnings back to a positive territory within 2 months.