ID :
184568
Thu, 05/26/2011 - 11:35
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Shortlink :
http://m.oananews.org//node/184568
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Thailand pays more for LPG imports after Japan quake
BANGKOK, May 26 (TNA) - Thailand has been facing higher import costs of liquefied petroleum gas (LPG) as global prices continue to rise following the March 11 disaster in Japan.
Department of Energy Business Director-General Veerapol Jirapraditthakul said the earthquake and tsunami forced Japan to buy more LPG from global suppliers, raising the price and premium of gas.
The LPG price for May stood at 965 U.S. dollars per ton on average, while the premium, including insurance and transport charges, surged to 100 U.S. dollars a ton. Consequently, the government subsidy through the State Oil Fund had risen to 21.7 baht per kilogram.
Mr Veerapol said that from May 1 to 25 Thailand imported about 115,600 tons of LPG, costing the government as much as 2.5 billion baht due to the subsidies. He added the trend was also likely to happen in June.
Regarding complaints from Thai industries over impacts from a rise in LPG price for industrial use by 3 baht per kilogram per quarter, from July onward, Mr Veerapol said his department was seeking ways to help the industries, especially in glass and ceramic.
Operators have insisted that without assistance, they would need to pay billions to relocate their facilities closer to gas pipelines or even overseas.
In addition, Mr Veerapol said the crude price would rise over the next two years due to rising demands worldwide and prolonged unrest in oil-producing countries, such as Libya.
Goldman Sachs for instance, had revised its expected oil price from 105 to 120 U.S. dollars a barrel this year, and from 120 to 140 U.S. dollars a barrel for 2012.
Morgan Stanley raised its forecast price from 100 to 120 U.S. dollars a barrel this year, and from 105 to 130 U.S. dollars a barrel in 2012. (TNA)
Department of Energy Business Director-General Veerapol Jirapraditthakul said the earthquake and tsunami forced Japan to buy more LPG from global suppliers, raising the price and premium of gas.
The LPG price for May stood at 965 U.S. dollars per ton on average, while the premium, including insurance and transport charges, surged to 100 U.S. dollars a ton. Consequently, the government subsidy through the State Oil Fund had risen to 21.7 baht per kilogram.
Mr Veerapol said that from May 1 to 25 Thailand imported about 115,600 tons of LPG, costing the government as much as 2.5 billion baht due to the subsidies. He added the trend was also likely to happen in June.
Regarding complaints from Thai industries over impacts from a rise in LPG price for industrial use by 3 baht per kilogram per quarter, from July onward, Mr Veerapol said his department was seeking ways to help the industries, especially in glass and ceramic.
Operators have insisted that without assistance, they would need to pay billions to relocate their facilities closer to gas pipelines or even overseas.
In addition, Mr Veerapol said the crude price would rise over the next two years due to rising demands worldwide and prolonged unrest in oil-producing countries, such as Libya.
Goldman Sachs for instance, had revised its expected oil price from 105 to 120 U.S. dollars a barrel this year, and from 120 to 140 U.S. dollars a barrel for 2012.
Morgan Stanley raised its forecast price from 100 to 120 U.S. dollars a barrel this year, and from 105 to 130 U.S. dollars a barrel in 2012. (TNA)
