The Ministry of Energy has revealed its plan to raise the price of cooking gas or Liquid Petroleum Gas (LPG) after March. It assured, however, that the hike will be gradual at a rate of 1 baht per kg.
Kulit Sombatsiri, the permanent secretary for the Ministry of Energy, explained that the increase is necessary because the government’s subsidy program capping the price of diesel at 30 baht per liter and LPG at 318 baht per 15-kg cylinder expires on March 31. The national Oil Fund has been subsidizing the initiative.
Kulit added that there will be two price adjustments for LPG. The first would raise the price to 333 baht per cylinder, in a 15-baht bump, while the second adjustment would bring an increase to 363 baht per LPG cylinder.
Additionally, Kulit emphasized that the Ministry of Energy does not ignore people’s plights and has intervened to regulate cooking gas prices since March 2020. He also said the government had spent 25 billion baht from the fund since then to depress market rates. The actual price of LPG is currently at 432 baht per one 15-kilogram cylinder.
The adjustments are expected to help the fund save between 270 and 280 million baht per month in spending.
The permanent secretary also noted that 13.5 million welfare cardholders are still eligible for the 45-baht discount on 15-kg LPG cylinders. The discount, as well as other benefits associated with the state assistance program, will be available through the end of April. (NNT)