The department's director-general Viraphol Jirapraditkul explained: "If the demand for LPG rises 8 per cent per annum like this, then imports would hit 250,000 tonnes a month by 2015-2016, from 150,000 tonnes a month now. This would require PTT to increase the capacity of its LPG depot as well as invest in more transport terminals and gas-distribution systems. It may have to look for a new location for the depot."
The construction of the new depot, which is still pending environmental and health-impact assessments, would take four to six years to complete. The plan for the new depot, set to expand PTT's capacity from 130,000 to 250,000 tonnes, will be discussed by the National Energy Policy Committee next Wednesday, Viraphol said.
The number of LPG stations in March stood at 1,016, up 76 per cent from 666 stations in March last year. Like NGV, the government has maintained domestic LPG prices by using the Oil Fund to shoulder the difference between local and global prices. LPG costs US$881 (Bt26,380) per tonne, up from $836 in March, and could rise further in line with oil prices and higher demand in Japan. The Energy Information Administration has forecast Dubai crude oil to average $116 per barrel in the second quarter.
Currently, the subsidy amounts to Bt12 per kilogram for locally produced gas and Bt19 for imported gas.
The consumption of LPG rose 24 per cent year on year to 17,500 tonnes per day or 525,427 tonnes a month in the first quarter of this year, showing an increase in all sectors, particularly the transport sector where demand rose 22 per cent to 2,200 tonnes daily. Household consumption rose 8 per cent to 7,100 tonnes, the industrial sector 6 per cent to 2,200 tonnes, and the petrochemical sector 65 per cent to 6,000 tonnes. Imports were down 8 per cent year on year to 106,000 tonnes per month, thanks to the opening of the sixth gas-separation plant.
In the first quarter, petrol consumption edged up 1 per cent to 20.5 million litres a day, while diesel consumption also grew 1 per cent to 53.8 million litres a day. Consumption of natural gas for vehicles rose 33 per cent to 6,188 tonnes per day.
The figures indicated that due to higher oil prices, consumers are opting for cheaper fuel. In the first quarter, retail petrol and diesel prices rose Bt4 and Bt2-Bt3 per litre respectively compared to the same period last year.
So far, the government has ignored demands for energy subsidies to an end. Yesterday, the Cabinet approved a cut in the excise and value-added tax for diesel from Bt5.83 per litre to Bt0.005 effective from today until September 30, to maintain the retail price of the fuel at below Bt30 per litre. Since December 17, diesel subsidies have cost the state more than Bt20 billion, while the Oil Fund only has Bt4 billion.
However, diesel subsidies have been successful in delaying a hike in the prices. According to Internal Trade Department director-general Vatchari Vimooktayon, the subsidies controlled the increase in the price of goods, letting them rise by 0.0004-0.089 per cent year on year depending on the weight and the oil needed for transportation purposes.
The price of construction materials increased 0.0022-0.0893 per cent - the most in the month. The price of electrical appliances and printing products rose 0.0066-0.0418 per cent, and the price of food and beverages by 0.0015-0.0363 per cent year on year. The price of daily essential goods, |such as sanitary napkins and detergent, changed 0.0004-0.0311 per cent. For the latest updates PRESS CTR + D or visit Stock Market news Today
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