Thailand is likely to increase LPG prices for transportation this weekend in line with government policy of floating energy prices, the Bangkok Post reported Wednesday, citing Energy Minister Arak Chonlatanon.
The Energy Policy Administration Committee will meet Friday to consider the new retail price.
The regulator also agreed on Tuesday to cut contributions made to the state Oil Fund from the sale of all types of fuels by Baht 0.20 (1 cent)/litre, due to rising global prices, the paper reported.
Platts assessed prices of propane and butane for delivery along the Singapore-Japan route 30-45 days forward at $1,110/mt and $1,040/mt, respectively Tuesday, compared with $946/mt and $931/mt about a month ago. In Thailand, the ex-refinery price of LPG is capped at $333/mt.
Arak said retail prices of LPG have been capped at Baht 18.13/kg (58 cents/kg) for a long time for the household and transport sectors.
Last month, LPG price for transportation was raised by Baht 3/kg to Baht 21.38/kg, while the price of LPG for the industrial sector was currently at Baht 30.13/kg.
The price for LPG used by households has been kept steady for four years, an official with the energy ministry told Platts.
Thailand's monthly LPG demand is around 600,000 mt, with households consuming 40% of total LPG, transportation uses 12%, industrial plants use 13% and 35% is used as feedstock in the petrochemical sector.
Since 2008, the Oil Fund has subsidised LPG by spending Baht 100 billion ($3.22 million) collected from other fuels' levies. Fuel subsidies have led to accumulated losses of Baht 17.1 billion in the fund.
