Fuel Prices Thailand - Revision history

Ranisha at 12:37, 23 September 2014

2014-09-23T12:37:27Z

Armin Wagner at 13:00, 26 March 2013

2013-03-26T13:00:52Z

Armin Wagner at 15:05, 13 February 2013

2013-02-13T15:05:53Z

Tai Becker at 15:47, 11 December 2012

2012-12-11T15:47:43Z

Tai Becker: Protected "Fuel Prices Thailand" ([edit=sysop] (indefinite) [move=sysop] (indefinite)) [cascading]

2012-12-04T10:57:10Z

Protected "Fuel Prices Thailand" ([edit=sysop] (indefinite) [move=sysop] (indefinite)) [cascading]

Ingmar Schlecht: 1 revision

2012-12-02T17:34:21Z

1 revision

Ingmar Schlecht: Text replace - "Fuel Price Exchanre Rate Date" to "Fuel Price Exchange Rate Date"

2012-11-14T16:56:00Z

Text replace - "Fuel Price Exchanre Rate Date" to "Fuel Price Exchange Rate Date"

New page

{{Fuel Price Factsheet
|Fuel Price Country=Thailand
|Fuel Currency=THB
|Fuel Price Exchange Rate=29.83
|Fuel Price Exchange Rate Date=2010/11/17
|Fuel Price Last Updated=
|Fuel Price Composition=GIZ_IFP2012_Thailand1.png
|Fuel Price Composition Fuel Type=High Speed Diesel
|Fuel Price Composition Date=2012/01/01
|Fuel Price Composition Annotation=Source: Own calculations based on http://www.eppo.go.th/info/8prices_stat.htm and →App. A1
|Fuel Price Composition 2=GIZ_IFP2012_Thailand2.png
|Fuel Price Composition Annotation 2=Price composition for one litre of 95-octane gasoline as of January 2011

Source: Own calculations based on http://www.eppo.go.th/info/8prices_stat.htm and →App. A1
|Fuel Pricing Policies=The downstream market in Thailand is liberal. The Energy Policy & Planning Office (EPPO) publishes very comprehensive information on fuel prices, monitored retail prices, monitored wholesale prices, refinery prices and levies/taxation. For all of these data, also historical data is available on their website (http://www.eppo.go.th/info/8prices_stat.htm).

Thailand uses an oil fund to flatten out volatile world market prices. Fuels are either subsidized or an oil fund levy is imposed in times of low oil costs. In December 2010, the government decided to begin subsidizing Diesel using the oil fund (see 2). Gasoline remained un-subsidized, and an oil fund levy of 7.5 Baht is imposed for gasoline. Hence, gasoline users cross-subsidize Diesel users.

As of April 2011, the subsidies for Diesel reached 4.5 Baht per litre (almost three times more than in January, shown in 2.; →see App A1). The balance of the oil fund rapidly approached zero. As a reaction, the government reduced Excise Tax on Diesel to almost zero (which also can be seen as a subsidy, when compared to other fuels). The whole issue of subsidizing Diesel is critically discussed by local experts, who recommend an end or an reduction of the subsidies, as they could produce a high burden to the national budget as soon as the oil fund balance reaches zero (→App. A3).
|Fuel Matrix Price Level=2.5
|Fuel Matrix Pricing Mechanism=3
|Fuel Matrix Annotation=An easy-to-understand price breakdown might be added to the informations given at www.eppo.go.th. Information on fuel taxes missing as of May 21st, 2011.
|Fuel Transparency Price Composition=2
|Fuel Transparency Pricing Mechanism=3
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Pump prices and margins
|Fuel Price Factsheet Source Link=http://www.eppo.go.th/info/8prices_stat.htm
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Wholesale Prices
|Fuel Price Factsheet Source Link=http://www.eppo.go.th/info/8prices_stat.htm
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Price Composition
|Fuel Price Factsheet Source Link=http://www.eppo.go.th/info/8prices_stat.htm
|Fuel Price Factsheet Source Annotation=Implicitly available from given data
}}

← Older revision		Revision as of 12:37, 23 September 2014
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	\|Fuel Price Factsheet Source Annotation=Implicitly available from given data		\|Fuel Price Factsheet Source Annotation=Implicitly available from given data
	}}		}}
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		+	[[Category:Thailand]]

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 {{Fuel Price Factsheet
 |Fuel Price Country=Thailand
-|Fuel Pricing Policies=The downstream market in Thailand is liberal. The Energy Policy & Planning Office (EPPO) publishes very comprehensive information on fuel prices, monitored retail prices, monitored wholesale prices, refinery prices and levies/taxation. For all of these data, also historical data is available on their website (http://www.eppo.go.th/info/8prices_stat.htm).
+|Fuel Pricing Policies="Pricing policy: Thailand established an oil fund after the oil shock of 1973. It has been used both to smooth price swings on the world market and to cross-subsidize socially sensitive fuels. LPG was cross-subsidized until Nov 2007, and for two months in 2009. Gasoline and diesel were subsidized for many months in 2004. Diesel was subsidized in 11 out of 12 months in 2004, and diesel, but not gasoline, continued to be subsidized by the fund in 2005 until Aug. Diesel was again subsidized in 2008, in Jun 2009, in the first four months of 2011 leading up to a closely contested national election in July 2011, and again in Aug and Sep 2012. In addition, the oil fund levy was eliminated for both gasoline and diesel in the last four months of 2011. By Apr 2011, the oil fund reserves had been depleted. Aside from periodic subsidization of gasoline and diesel, the oil fund has been used mainly to subsidize bioethanol and biodiesel in recent years. The Oil Fund had a deficit of 22 billion baht (US$0.7 billion) in Jun 2012. In 2011, the issue at hand was how long government could prevent the diesel price from rising above 30 baht (US$1)/liter. Monthly average prices of diesel in Bangkok and monthly average benchmark FOB prices relevant to Thailand since 2007 are shown below. The plot illustrates government’s attempts to keep the retail price at or below 30 baht/liter.
-Thailand uses an oil fund to flatten out volatile world market prices. Fuels are either subsidized or an oil fund levy is imposed in times of low oil costs. In December 2010, the government decided to begin subsidizing Diesel using the oil fund (see 2). Gasoline remained un-subsidized, and an oil fund levy of 7.5 Baht is imposed for gasoline. Hence, gasoline users cross-subsidize Diesel users.
+Tax reductions: In Apr 2011, the cabinet approved a cut in the excise tax for diesel from 5.31 baht (US$0.18)/liter to 0.005 baht (US$0.0002) effective from Apr 21 until Sep 30 to keep diesel price at or below 30 baht (slightly less than US$1)/liter, a move widely criticized for being political even by the Federation of Thai Industries. Although launched initially as a temporary measure, this excise tax reduction has remained in effect to this day. In Jul 2011, the Excise Department said the decision had led to higher diesel consumption and government had lost 9 billion baht (US$300 million) a month. Government in Aug 2011 suspended contributions of 91 and 95 RON gasoline and diesel to the Oil Fund. Officials were sent to 18,000 filling stations nationwide to check the amount of stocks before the new prices became effective; government had set aside about 3 billion baht (US$100 million) to compensate retailers for the inventory. In addition, biofuels enjoy large tax reductions. The total reduction in taxes and charges on E10 for gasoline with 91 RON was US$0.63 per liter of ethanol blended in Feb 2007. By mid-2008, the overall reduction rose to US$2 per liter of ethanol blended, and remained above US$2 in 2012, or triple the FOB price of the same grade of gasoline in Singapore.
-As of April 2011, the subsidies for Diesel reached 4.5 Baht per litre (almost three times more than in January, shown in 2.; →see App A1). The balance of the oil fund rapidly approached zero. As a reaction, the government reduced Excise Tax on Diesel to almost zero (which also can be seen as a subsidy, when compared to other fuels). The whole issue of subsidizing Diesel is critically discussed by local experts, who recommend an end or an reduction of the subsidies, as they could produce a high burden to the national budget as soon as the oil fund balance reaches zero (→App. A3).
+LPG pricing: The primary source of the subsidy for LPG is not the Oil Fund but the subsidy applied at the refinery gate: the ex-refinery price has been frozen at US$333 a tonne for more than two decades under a program intended originally to help relieve the burden of households and food vendors. The benchmark FOB price for LPG has been consistently above US$333 since Aug 2004, rising to an average of US$850 a tonne in 2011 and US$920 in 2012. Government’s plan to float the price of LPG for industries in 2008 faced strong opposition and was delayed until Jul 2011, when government began to raise the price by 3 baht/kg every three months until it reached 30.13 baht/kg; price increases above 30.13 baht/kg would require the approval of the National Energy Policy Council, chaired by the prime minister. Many companies switched to 48-kg cylinders, normally reserved for household use. Government began to raise the price of automotive LPG in 2012. The LPG subsidy is borne by government and the CNG subsidy by PTT (formerly known as Petroleum Authority of Thailand), and hence government has used the Oil Fund to finance conversion of taxis from LPG to CNG. PTT is eventually reimbursed for LPG subsidy, but with a long delay. In Sep 2012 in Bangkok, LPG was sold at 18.13 baht (US$0.58)/kg to households, 30.13 baht (US$0.97)/kg to industrial consumers, and 21.38 baht (US$0.69)/kg as an automotive fuel, and these prices were maintained through early 2013. The prices of LPG for residential and industrial consumers in Bangkok, together with recent national monthly consumption, are shown below. The plot shows stagnating consumption of LPG by industrial users and sharply rising consumption of LPG by households, supporting reports that some industrial users may have switched to residential LPG for cost savings.
-"The Oil Fund is used to cross-subsidize fuel prices, and in addition the ex-refinery price of LPG is heavily subsidized, resulting in a large subsidy burden. Government stopped posting monthly information on the balance of the Oil Fund on the Web site of Energy Policy and Planning Office (EPPO) of Ministry of Energy in 2011 in the months leading up to a closely contested general election in July, and has not resumed since. Government subsidizes the prices of LPG and biofuels, and in recent years diesel. In 2011, the issue at hand was how long government could prevent the diesel price from rising above 30 baht (US$1/liter). The Oil Fund had a deficit of 22 billion baht (US$0.7 billion) in Jun 2012. Government’s plan to float the price of LPG for industries in 2008 faced strong opposition and was delayed until Jul 2011, when the price began to be raised by 3 baht/kg every three months until it reached 30.13 baht/kg; price increases above 30.13 baht/kg would require the approval of the National Energy Policy Council, chaired by the prime minister. Many companies switched to 48-kg cylinders, normally reserved for household use. The price of automotive LPG began to be raised in 2012. The LPG subsidy is borne by government and the CNG subsidy by PTT (formerly known as Petroleum Authority of Thailand), and hence government has used the Oil Fund to finance conversion of taxis from LPG to CNG. The Oil Fund received authorization to borrow 10 billion baht (US$0.32 billion) in Oct 2011, and another 20 billion baht (US$0.65 billion) in Mar 2012. In Apr 2011, the cabinet approved a cut in the excise tax and VAT for diesel from 5.83 baht (US$0.19) per liter to 0.005 baht effective from on Apr 21 until Sep 30 to keep diesel price at or below 30 baht a liter, a move widely criticized for being political even by the Federation of Thai Industries. In Jul 2011, the Excise Department said the decision had led to higher diesel consumption and government had lost 9 billion baht (US$300 million) a month. Government has fixed the ex-refinery price of LPG at US$333 per tonne for more than two decades under a program intended originally to help relieve the burden of households and food vendors. Government in Aug 2011 suspended contributions of 91 and 95 RON gasoline and diesel to the Oil Fund. Officials were sent to 18,000 filling stations nationwide to check the amount of stocks before the new prices became effective; government had set aside about 3 billion baht (US$100 million) to compensate retailers for the inventory. PTT is eventually reimbursed for LPG subsidy, but with a long delay." (Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
+Consequences of subsidies: The Oil Fund received authorization to borrow 10 billion baht (US$0.32 billion) in Oct 2011, and another 20 billion baht (US$0.65 billion) in Mar 2012. In Jan 2013, the oil fund was reported to have a deficit of 16.4 billion baht (US$550 million).
 |Fuel Currency=THB
 |Fuel Price Exchange Rate=29.83

@@ Line 4: / Line 4: @@
 |Fuel Price Exchange Rate=29.83
 |Fuel Price Exchange Rate Date=2010/11/17
 |Fuel Price Composition=GIZ_IFP2012_Thailand1.png
 |Fuel Price Composition Fuel Type=High Speed Diesel
@@ Line 18: / Line 17: @@
 As of April 2011, the subsidies for Diesel reached 4.5 Baht per litre (almost three times more than in January, shown in 2.; →see App A1). The balance of the oil fund rapidly approached zero. As a reaction, the government reduced Excise Tax on Diesel to almost zero (which also can be seen as a subsidy, when compared to other fuels). The whole issue of subsidizing Diesel is critically discussed by local experts, who recommend an end or an reduction of the subsidies, as they could produce a high burden to the national budget as soon as the oil fund balance reaches zero (→App. A3).
 |Fuel Matrix Pricing Mechanism=3
-|Fuel Matrix Annotation=An easy-to-understand price breakdown might be added to the informations given at  www.eppo.go.th. Information on fuel taxes missing as of May 21st, 2011.
+|Fuel Matrix Price Level=2.5
 |Fuel Transparency Price Composition=2
 |Fuel Transparency Pricing Mechanism=3