The government has raised the natural gas for vehicle (NGV) price by 50 satang per kilogram, from 8 baht 50 satang to 9 baht, beginning today. Meanwhile the PTT has raised its retail benzene and diezel prices since midnight last night.

The National Energy Policy Council last week approved the resumption of oil fund levies on petrol and gasohol collection by the state Oil Fund at one baht a litre, and diesel at 0.60 baht a litre.

As a result, today the PTT has increased the prices of benzene and gasohol by 1 baht and 7 satang per litre.

The retail price of benzene 91 is at 38 baht 54 satang, E20 at 34.51 baht, gasohol 95 at 37.26 baht, and gasohol 91 at 35.51 baht per litre.

The price of diezel has increased by 64 satang, forcing the current price to stay at 31.13 baht. Meanwhile E85 has decreased by 11 satang to stand at 22.31 baht.

The gas prices have increased five times in the past two weeks, during which Benzene prices have gone up by 3.57 baht .

NNT

After joining a meeting of the Energy Ministry’s flood relief operation unit, Mr Pachara Naripthaphan, Spokesperson of the Ministry, admitted that the floodwater currently creeping into Bangkok and its vicinities had become more of a cause for concern. Nonetheless, he assured an adequate supply of energy by the state-owned PTT, expressing confidence that utmost efforts would be made to ensure no shortages of NGV so as to avert impacts on the operations of public buses and vans.

Regarding some PTT stations which previously had to suspend their services due to inundation, Mr Pachara said the damage assessment would be conducted hastily once the water had receded, promising that the stations would reopen to motorists as quickly as possible.

Energy Minister Pichai Naripthaphan said the Ministry was planning to amend the law in order to boost the national oil reserve. Under the law, the national short-term crude oil reserve accounts for five percent of crude oil in the country. Such a percentage can support the country’s basic operation for 18 days. The Energy Ministry plans to increase the short-term reserve to last 29 days and the long-term reserve to last 90 days in accordance with energy policies of developed countries.

The Energy Business Department is considering whether the construction of the oil reserve facility should be invested by the public sector or the private sector. The Ministry is also planning to promote pipeline expansion, which it deems to help lower land transport accidents, and bridge the oil price gap between the capital and other provinces.

According to Bangchak Petroleum President Anusorn Sangnimnuan, the 25 billion THB budget will be spent on improvement of Bangchak’s refineries, production of alternative energy, and business expansion overseas.

Bangchak has planned to open gas stations throughout Myanmar, Laos, Cambodia and China after the inauguration of ASEAN Economic Community in 2015. The project is expected to start next year.

The giant energy supplier is also set to increase the number of E-20 gasohol stations in the country to 600 within next year in order to meet the growing demand. Currently the number of cars using E-20 has risen to one million.

Energy Minister Pichai Naripthaphan announced that CEPA had decided to reduce the Oil Fund collection from Benzene 95 by 7.17 THB per liter, Benzene 91 by 8.02 THB per liter and diesel by 3 THB per liter. The resolution is in compliance with the decision of the National Energy Policy Committee chaired by Prime Minister Yingluck Shinawatra.

As a result, from 6.00 hrs tomorrow onwards, the retail prices of Benzene 95, Benzene 91 and diesel will drop to 39.32 THB, 34.77 THB and 26.99 THB a liter respectively.

Initially, the collection cut will take effect only for six months to one year. It is expected to cause the income of the State Oil Fund to shrink by 6.16 billion THB per month. The fund now has a cash reserve of 15.61 billion THB and a total debt of 14.61 billion THB and is estimated to be able to subsidize fuel prices until January next year.

EGAT’s Communication Director Mr. Tatree Riewcharoen said EGAT had been working with the Royal Irrigation Department in keeping the water levels safe in the dams. However, he said it was expected that the water would be released from the dams if the amount of rain continued to rise.

The Royal Irrigation Department is currently assessing the situation on the daily basis in a bid to mitigate the impact on residents should there be the need to release water into the rivers. Meanwhile, the water is being released from the Bhumibol dam at the moment for irrigation purposes, therefore; the water levels are being maintained at its capacity.

Areas above the dam, particularly on the mountains could be affected as it is still raining continuously. The water is filling the dam quickly, causing the rivers to overflow into these areas. Flood victims will be assisted and provided for to help them cope with the ordeal.

The oil price adjustment of the two companies was made due to the increase in international prices. The new retail oil prices at all PTT and Bangchak stations in Bangkok and its vicinities are as follows:

Benzene 91 now costs 43.54 baht per litre.

Gasohol 95 stands at 38.64 baht and Gasohol 91 at 36.14 baht per litre.

E20 is at 35.24 baht, while E85 at 22.82 baht per litre.

High-speed diesel remains at 29.99 baht per litre.

The price adjustment at PTT and Bangchak was made after foreign retailers increased their prices on Thursday; as a result, the new retail oil prices at all PTT and Bangchak stations in Bangkok and its vicinities are as follows:

Benzene 91 now costs 43.04 baht per litre.

Gasohol 95 stands at 38.14 baht and Gasohol 91 at 35.64 baht per litre.

E20 is at 34.74 baht, while E85 at 22.52 baht per litre.

High-speed diesel remains at 29.99 baht per litre.

Bangchak Petroleum Plc has voiced disagreement with the incoming government’s policy to terminate the State Oil Fund, insisting that it is an important tool for regulating energy prices of the country.

Bangchak President Anusorn Saengnimnuan recommended the Pheu Thai-led administration to thoroughly review its plan to reduce fuel prices by shutting down the Oil Fund, which he said had been a crucial instrument in the state’s control of oil prices. Instead, he suggested that the fund be maintained with the rate of collection being adjusted periodically in accordance with the circumstance.

For instance, Mr Anusorn pointed out that the Oil Fund collection could be lowered when the oil price was on the rise in order to shoulder the burden on consumers, whereas the collection could also be raised when the oil price dropped.

The President of Bangchak then warned that the closure of the Oil Fund would cause the majority of motorists to return to using benzene and in turn decrease the popularity of alternative energy. He added that the government would also be faced with the necessity to cut the oil excise tax, which would lead to revenue shrinkage.

According to Mr Anusorn, the incoming government and the new energy minister should urgently convene with the private sector about the energy price restructuring. He said the acquirement of loans for subsidizing fuel prices and the retention of the diesel price at below 30 THB per liter would need to be ended.

According to PTT Upstream Petroleum and Gas Business Group Chief Operating Officer Pailin Chuchottaworn, aquanauts have successfully closed the valve of the fractured pipeline in order to mend the problematic branches.

The PTT is now investigating damages to the main pipe. Seawater is expected inside, and it will take time to remove water and humidity from the pipeline. The PTT then will test the system again to ensure that gas transmission will resume as fast as possible.

As for fuel substitution, the PTT has been supplying bunker oil to power plants adequately. Part of the oil is domestically produced while other 30 million litres have been imported.

The PTT has also prepared additional 70,000 tons of Liquefied Natural Gas (LNG) this July to meet local demand. Meanwhile, the operation of the gas separation unit is still running as usual.