ID :
204579
Wed, 08/31/2011 - 12:04
Auther :
Shortlink :
http://m.oananews.org//node/204579
The shortlink copeid
Cuts in fuel prices lead to declining inflation in Thailand
BANGKOK, August 31 (TNA) The Thai Chamber of Commerce said on Wednesday that a drop in fuel prices, caused by the new Pheu Thai Party-led government's moves over the past week to reduce levies contributed to the state oil fund, will have some positive impacts on the Thai economy, including a drop in the country's inflation by some 0.8 per cent.
Thai Chamber of Commerce Deputy Chairman Pornsilp Patcharintanakul acknowledged, however, that the cheaper fuel prices will only reduce part of, not overall, operational costs of local business operators, as over 30 per cent of local trucks have already been adapted to be run by natural gas for vehicle (NGV) engines, rather than fossil or gasohol fuels.
Pornsilp suggested that the new Thai government also needs to implement measures to address the problem of falling prices of economic crops used as raw materials to produce gasohol in the wake of a drop in retail gasoline prices on the domestic market and to effectively handle negative impacts of the vulnerable global economy on the country's food and energy security, saying that the incumbent administration's mortgage schemes for major Thai agricultural crops will prop up their prices to only some extent.
Regarding the new Thai government's policy on a cut in excise tax for people's first cars, the Thai Chamber of Commerce deputy chair assessed that the measure will further spur domestic consumption and the Thai economy to only a certain extent as well, proposing that the new Pheu Thai-led administration raise some taxes to boost their revenues, in lieu of its cuts on some taxes and people's costs of living through some specific programs so far. (TNA)
Thai Chamber of Commerce Deputy Chairman Pornsilp Patcharintanakul acknowledged, however, that the cheaper fuel prices will only reduce part of, not overall, operational costs of local business operators, as over 30 per cent of local trucks have already been adapted to be run by natural gas for vehicle (NGV) engines, rather than fossil or gasohol fuels.
Pornsilp suggested that the new Thai government also needs to implement measures to address the problem of falling prices of economic crops used as raw materials to produce gasohol in the wake of a drop in retail gasoline prices on the domestic market and to effectively handle negative impacts of the vulnerable global economy on the country's food and energy security, saying that the incumbent administration's mortgage schemes for major Thai agricultural crops will prop up their prices to only some extent.
Regarding the new Thai government's policy on a cut in excise tax for people's first cars, the Thai Chamber of Commerce deputy chair assessed that the measure will further spur domestic consumption and the Thai economy to only a certain extent as well, proposing that the new Pheu Thai-led administration raise some taxes to boost their revenues, in lieu of its cuts on some taxes and people's costs of living through some specific programs so far. (TNA)
