Ministry of Energy: NGV price rise in line with actual cost

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BANGKOK, 4 February 2015 – The Ministry of Energy has insisted that it will gradually raise the price of NGV to reflect its true cost of production.

Following the public transport sector’s’ call for higher fares after the price of NGV has increased, Deputy Energy Minister Praipol Kumsap, said the hike is in line with the NGV’s actual cost of production.

The price of NGV has increased by another 50 satang, to 10 baht per kilogram. The Bangkok Mass Transit Authority is also asking for permission to raise its fare from 8 to 11 baht. The higher gas price has also prompted taxi drivers to follow suit.

According to the Ministry, it costs as much as 14-15 baht to produce a kilogram of NGV. Even though its price is expected to rise further, it will still be cheaper than most other types of fuel.

The excise tax will not be imposed at this timer in order to keep the cost of living affordable for Thais. The Ministry of Transport will look into the requests whether public transportation fares should be increased.

Deputy Energy Minister Praipol Kumsap has assured that the government will help those with lower income cope with the higher traveling costs.