LPG price pegged at 23.96 baht/kg in July

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BANGKOK, 6 July 2015 -The Committee on Energy Policy Administration (CEPA) has decided to keep the retail price of liquefied petroleum gas (LPG) unchanged for this month at 23.96 baht per kilogram.

Following the latest meeting of CEPA, Minister of Energy Narongchai Akrasanee revealed that the meeting acknowledged a decline in the LPG price in the world market from 419 US dollars per ton in June to 407 dollars this month. Nonetheless, he said a resolution was passed to not reduce the domestic retail price in line with the global rate but to maintain it at 23.96 baht per kilogram. The move was aimed to allow for the payment of the price difference to the State Oil Fund.

As a result, the contribution to the Oil Fund from LPG sales will increase 12 satang to 1.07 baht per kilogram, equivalent to about 314 million baht each month. The fund is currently running a surplus of 7.39 billion baht.

Mr Narongchai added that the LPG price restructuring policy, which has been effective since February this year, has helped the country cut LPG imports to only 93,300 tons a month in May, almost half the amount imported in December last year. He also affirmed that the price restructuring will be completed within this year.