The price adjustment resulted from higher prices of crude oil in the global market and petroleum products in Singapore’s market.

Retail oil prices at PTT and Bangchak stations in Bangkok and its vicinities have been shown as follows:

Benzene 91 is sold at 43.74 baht per liter.

Gasohol 95 stands at 38.84 baht and Gasohol 91 at 36.34 baht per liter.

E20 is at 35.44 baht, while E85 still at 22.72 baht per liter.

High speed diesel remains at 29.99 baht per liter thanks to the government’s diesel price subsidy policy.

Moody’s Investors Service has changed the local currency issuer rating for PTT Plc from A2 stable to A3 negative while the foreign currency issuer rating is kept at A3 with negative outlook in accord with the negative creditbility earlier given to Thailand.

Earlier in May, Moody’s announced the creditworthiness evaluation for Thailand to be at Baa1 with a negative outlook due to the recent political unrest in Bangkok. However, other types of credibility have been kept at the same level as the political pandemonium has not posed any threat to the overall credit.

Chief Executive Officer and President of PTT Prasert Bunsumpun revealed that the company had agreed with the PEA to build wind farms with the production capacity of 5-10 megawatts in the southern and eastern regions of Thailand under a total budget of 300-700 million THB. The company expects to be able to put the project to commercial use by 2014.

The wind-powered electricity to be generated by the wind farms is anticipated to replace oil consumption by 2.26-4.53 million liters per year.

According to a study conducted by the Ministry of Energy on the wind potential in the country, Thailand can produce around 1,600 megawatts of electricity from wind. In the latest 15-year Alternative Energy Development Plan, the Energy Ministry has targeted to have no less than 115 megawatts of wind-generated electricity by 2011 and 800 megawatts by 2022.

From tomorrow onwards, PTT and Bangchak Petroleum will begin distributing biodiesel B3 to motorists in place of biodiesel B2 in compliance with the government’s policy to promote the use of alternative energy. At the same time, the retail price of biodiesel B3 will also be reduced by 30 satang per liter.

As a result, retail oil prices in Bangkok and its vicinities will be as follows:

Biodiesel B3 will be sold at 27.69 THB per liter.

Biodiesel B5 will be sold at 26.79 THB per liter.

Benzene 91 will be sold at 35.04 THB per liter.

Gasohol 95 will be sold at 31.24 THB per liter.

Gasohol 91 will be sold at 29.74 THB per liter.

Gasohol E85 will be sold at 19.42 THB per liter.

PTT Chief Executive Officer Mr Permsak Shevawattananon cited that PTT was to propose to the EPPO to amend the LNG purchase agreement made with the Qatar Gas Operating Co Ltd for a million ton. He said the amendment should be adjusted from long term to spot trading since the cost in spot market tended to decrease by 20% compared to long term purchase.

The change of trade agreement causes the PTT to adjust the management system of LNG depot. PTT will purchase LNG in spot market during the low-cost period with stock in depot. A million ton of LNG from Qatar can be received by the middle of next year after finishing depot construction.

Mr Permsak elaborated that PTT had signed a memorandum of understanding on developing biogas with the Universal Adsorbents & Chemicals Public Company Limited. The project is aimed to produce the Compressed Bio-methane Gas (CBG) as the fuel used in vehicles.

Mr Prajya Phinyawat, Chief Operating Officer of PTT’s Downstream Petroleum Business Group, stated that the replacement should help strengthen the stability of the energy sector and reduce trade deficit of the country as it would trim down the import of diesel by at least 550 million liters per year or a worth of 11 billion THB.

The PTT executive believed the strategy would also lessen people’s burdens caused by frequent fluctuation of the oil price. He guaranteed that increasing the ratio of biodiesel B100 into the formula by 1% would have no impact on the engine.

Currently, biodiesel B5 is available at 995 out of a total of 1,286 PTT stations nationwide. The company plans to distribute the alternative fuel at all stations in compliance with the government policy.

The oil prices have been adjusted in line with the reduction of crude price in the world market resulting in the currently high marketing margin. Nevertheless, the prices of diesel and E85 products will be unchanged tomorrow.

Retail oil prices in Bangkok and vicinities will be as follows:

Benzene 91 will be sold at 37.64 THB per liter.

Gasohol 95 will stand at 33.84 THB and Gasohol 91 at 32.34 THB per liter.

E20 will be 31.54 THB and E85 20.32 THB per liter.

Biodiesel B2 will remain at 29.89 THB per liter while B5 at 28.69 THB per liter.

PTT President Prasert Bunsumpun stated that the company will gradually replace benzene 91 and 91 with gasohol over the coming years but noted no exact time frame for the substitution can be specified yet. PTT will adjust its sales according to customer demand. Mr. Prasert made known that the trend is currently leaning towards alternative fuels like E20 and E85.

PTT has also joined hand with its affiliate PTT Chemical in producing lubricant oil from environmentally-friendly plastic granules. The new lubricant has already been widely accepted overseas and may help boost PTT sales in foreign markets.

PTT’s share in the lubricant oil market has increased from 36% last year to 38.6% this year, making the product the market’s top seller.

PTTEP has recently announced that its subsidiary PTTEP Bengara Company Limited has terminated the Bengara-1 project in which PTTEP holds 40% investment. The decision will take effect as soon as the firms’ request is approved by the Indonesian authority BPMIGAS.

At present, PTTEP also has another join venture with an Indonesian subsidiary. The project called Semai II is now in the exploration process. The companies have planned to drill an exploring well in 2010.

Benzene oil remained at the same price. Oil retail prices of PTT in Bangkok and its perimeter today will be as follows: diesel price at 28.09 THB/liter, bio diesel B5 at 26.89 THB/liter, benzene 91 remained at 36.34 THB/liter, gasohol 95 remained at 32.74 THB/liter, while gasohol 91 became 31.24 THB/liter and E20 and E85 still remained at 30.44 and 18.72 THB/liter respectively.