ID :
175938
Sun, 04/17/2011 - 14:07
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Shortlink :
http://m.oananews.org//node/175938
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Thai PM to convene an urgent meeting on rising oil prices
BANGKOK, April 17 (TNA) - Steadily rising oil prices have prompted Thai Prime Minister Abhisit Vejjajiva to convene an urgent meeting with concerned agencies Monday to decide if the government should continue to freeze the local diesel price or float it.
Abhisit said that the government has frozen the diesel price at 30 baht per liter to cap transport charges and product prices. On Sunday, less than 10 billion baht remains in the State Oil Fund and it will be enough to freeze the diesel price only until the end of this month. Therefore, the government will consider how it can handle the costs of transport and goods.
The prime minister said that at this point the country could not depend only on the State Oil Fund and his government did not want to lack its financial disciplines by spending the oil fund excessively to freeze the diesel price.
Energy Minister Wannarat Charnnukul admitted that the diesel price was higher than expected. The measure to freeze the diesel price that started last December is costly and it can dry up the State Oil Fund on April 27.
Dr Wannarat said that it was good that global oil prices started to drop in the past week. He expects a policy relating to the diesel price from the prime minister Monday.
On April 11, the National Energy Policy Council raised the diesel subsidy from 5.90 baht by 0.50 baht to 6.40 baht per liter to freeze the diesel price at 30 baht per liter.
From December 17, 2010, to April 11 this year, the State Oil Fund lost about 20.6 billion baht to freeze the diesel price, leaving only 7.2 billion baht on reserve currently. (TNA)
Abhisit said that the government has frozen the diesel price at 30 baht per liter to cap transport charges and product prices. On Sunday, less than 10 billion baht remains in the State Oil Fund and it will be enough to freeze the diesel price only until the end of this month. Therefore, the government will consider how it can handle the costs of transport and goods.
The prime minister said that at this point the country could not depend only on the State Oil Fund and his government did not want to lack its financial disciplines by spending the oil fund excessively to freeze the diesel price.
Energy Minister Wannarat Charnnukul admitted that the diesel price was higher than expected. The measure to freeze the diesel price that started last December is costly and it can dry up the State Oil Fund on April 27.
Dr Wannarat said that it was good that global oil prices started to drop in the past week. He expects a policy relating to the diesel price from the prime minister Monday.
On April 11, the National Energy Policy Council raised the diesel subsidy from 5.90 baht by 0.50 baht to 6.40 baht per liter to freeze the diesel price at 30 baht per liter.
From December 17, 2010, to April 11 this year, the State Oil Fund lost about 20.6 billion baht to freeze the diesel price, leaving only 7.2 billion baht on reserve currently. (TNA)
