On Tuesday, the Director of the Office of Petroleum and Petro- Chemical Planning, under Ministry of Energy, Mr. Suchalee Sumamaan publicized that the price of LPG, liquid petroleum gas, or propane, will certainly increase shortly. The government needs to stop subsidizing this type of gas, as it affects the other gasoline markets, and the government has spent over 100,000 million baht supporting the LPG price since 2008. Now, the Gasoline Fund is carrying a debit of some 15,000 million baht.
Since the previous government started supporting LPG, the price in Thailand has been a lot lower than neighboring countries. Reports have shown rampant smuggling of cheaper LPG supplies for resale in Thailand’s neighboring countries. In addition, the consumers of other types of gas have had to pay higher prices, unaware that the government boosted the prices of other types of gas to cover the LPG subsidy.
The estimated incremental increase of the price of LPG will be 75 stangs per month. This will result in a gradual increase in the LPG price, to help avoid sticker shock for Thai residents.
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