The Energy Policy Administration Committee (EPAC) has announced that the price of liquefied petroleum gas (LPG), which is used for cooking in homes, will increase gradually over the next three months.
As authorities struggle to contain astronomical expenditures to fund an LPG price subsidy program, EPAC indicates that the price paid by consumers will be allowed to approach the current market price.
Permanent Secretary of the Ministry of Energy Kulit Sombatsiri said the LPG price, which is currently 363 baht per 15-kilogram standard cylinder, will increase to 378 baht next month and to 393 and 408 baht in August and September respectively. The current price of LPG on the market is 460 Thai Baht.
The new rates will be implemented in Bangkok and the surrounding provinces, while households in other provinces may incur additional expenses due to the addition of transportation costs.
Kulit stated that the new pricing measures are also necessary to increase the liquidity of the country’s Oil Fuel Fund, whose funds have been used to subsidize recent diesel and LPG subsidy programs.
The price of LPG had been set at 318 baht for several months before the government decided to raise it to 333 baht in April and then gradually to 363 baht this month.
In order to alleviate the financial burdens of low-income earners, the authorities have also agreed to extend a 100-baht discount on LPG until September 30. Currently, four million individuals receive discounts through the social welfare card program. (NNT)