Energy Ministry to overhaul energy pricing structure

Newshound · 1 · 49

0 Members and 1 Guest are viewing this topic.

Offline Newshound

  • Member
    • Posts: 914
    • Korat-Farang.com
The Ministry of Energy is planning to gradually adjust the entire pricing structure for energy to reflect the true cost after the end of this year.

The Minister of Energy Narongchai Akrasanee revealed that the ministry will adjust the energy pricing structure after the New Year holiday, which is a one-month delay from the initial plan to adjust the price at the beginning of December.

He said that although the oil price in the global market is still low, the Ministry would take this opportunity to collect revenue and add it to the oil fund. The Ministry will adjust the Oil Fund’s rate of diesel oil tax from 3.70 baht per liter to 5.60 baht per liter in the form of excise taxation.

He believes that this price change will not affect the public too much as the adjusted price will be slightly higher than the price prior to the adjustment.

The Minister of Energy has also mentioned that the adjustment of LPG and NGV must be postponed too since there are 1.2 million cars equipped with LPG tanks as currently, LPG price is much cheaper than petroleum.

He said that it is crucial to adjust the price structure of LPG and NGV to reflect the real cost. However, the adjusted price will still be lower than petrol.

The Minister of Energy has pressed that the adjustment of the entire pricing structure will be done gradually to stir less pricing distress in the public. The Ministry also plans to reduce the use of natural gases by pushing for the construction of the coal power plant in Krabi province, which is still receiving public opposition.

The government will still continue to push for the construction of the coal power plant project, but the government is also considering the coal power plant's construction in a neighboring country instead, if the existing location can’t be used, said the Minister of Energy.