[Lillie_Steins]

Petrol, LPG, CNG all up but gasohol unchanged

Motorists and public transport operators face rising prices for premium and regular petrol, liquefied petroleum gas and compressed natural gas.

Starting today, drivers have to pay 1 baht more per litre for Octane-95 and Octane-91 petrol after yesterday's decision by the National Energy Policy Committee to add the price increase to its levy collection.

That will widen the gap between Octane-95 petrol and gasohol 95 to 7.37 baht per litre from 6.3 baht, while the gap between Octane-91 petrol and gasohol 91 will rise to 3.42 baht from 2.35 baht.

The committee, however, has maintained the levy collection of ethanol-blended petrol, or gasohol, at the existing level. The levy collection for diesel will remain unchanged at 60 satang per litre to help mitigate the higher cost of living.

Energy Minister Arak Chonlatanon said the decision not to charge more for gasohol was in line with the government's policy to encourage motorists to use alternative fuel.

From next Monday, the new price for LPG in the transport sector will be 11.41 baht per litre, or 21.13 baht per kilogramme, as the committee will collect a levy of another 75 satang per kilogramme, or 41 satang per litre.

The state Oil Fund will also reduce subsidising CNG prices in the transport sector next Monday by another 50 satang per kilogramme, resulting in the rise of the CNG retail price to 10.5 baht a kilogramme compared to 8.5 baht in December last year.

The CNG price is being allowed to increase by 50 satang every month since mid-January to 14.5 baht in December this year in accordance with a study conducted by Chulalongkorn University's Energy Research Institute that showed its real cost was being subsidised by the state.

But Mr Arak said the Energy Ministry might reconsider the plan.

Peerapong Achariyacheevin, PTT PLc's senior executive vice-president for gas business, said the demand for CNG had risen rapidly to more than 7,000 million standard cubic feet per day now from 6,400 in December.

The petroleum giant expects to suffer an accumulated loss from CNG business of more than 50 billion baht this year from 41 billion baht as of the end of March.

"Gas users should realise that we have gained no profit from this business since the use of CNG kicked off in Thailand in 2004," said Mr Peerapong.

Taxi and bus operators will renew their call for a raise in fare prices if the government insists on floating the price of CNG to 14.5 baht per kilogramme this year.

"We will surely repeat our call for the Transport Ministry to approve a higher rate of taxi fares," said Witoon Naewpanich, chairman of the Siam Taxi Cooperatives.

Withaya Premchit, president of the Private Bus Development Association, said the CNG price hike had yet to affect operators too much, but the diesel price increase had raised costs.

Three private bus operator groups that own 6,000 buses _ the Private Bus Development Association, Passenger Bus Operators' Association and Minibus Operators' Association _ must wait until April 25 to know whether they will be allowed to raise fares.

Chatchai Phu-aree, the leader of song thaew passenger vehicles in Bangkok, said the price of CNG supplied by PTT, the only distributor, could be reduced if the firm had a better distribution system.

Operators are considering a fare rise to offset their operating costs, he said.

Meanwhile, the Energy Ministry has warned householders that the fuel tariff in next month's electricity bills will rise because of a temporary suspension of natural gas delivery from Myanmar and rising fuel prices.

The government expects to use a budget of 1.2 billion baht to buy bunker and diesel oil to generate electricity instead, Mr Arak said.