Bangkok: A special cabinet meeting has approved negotiations with refineries to return profit margins as part of efforts to accelerate the country's exit from the ongoing energy crisis. The Prime Minister and the Cabinet have pledged to expedite recovery measures, emphasizing the need to restructure the energy sector and reduce the government budget.
According to Thai News Agency, Prime Minister and Minister of Interior Anutin Charnvirakul, along with the newly formed cabinet, announced the outcomes of the meeting, which lasted approximately two hours. This was the first cabinet meeting since the cabinet members took their oath of office. The government is focused on alleviating the impact of the escalating conflict in the Middle East, which has contributed to high energy prices and petrochemical shortages that are expected to persist.
The government has acknowledged the challenges in securing fuel and natural gas due to limited resources and the Middle East situation. By presenting facts to the public, the government aims to foster understanding and help citizens adapt their lifestyles to cope with the situation. The Prime Minister affirmed the cabinet's commitment to diligently solving problems and safeguarding public interests during these challenging times.
Three key measures have been outlined to address the energy crisis and reduce the public's burden. The government plans to cut the public sector budget to focus on mitigating the impact on citizens. This includes restructuring energy prices for oil and electricity to lower energy costs swiftly. Additionally, relief measures such as the "Half-Price Plus" and "Thai Helps Thai" projects will provide low-interest loans to farmers, industrial sectors, and SMEs.
The government has confirmed the potential use of emergency decree powers to address and prevent oil shortages. The necessity of exercising these powers has been communicated by the Ministry of Energy and the Minister of Finance, highlighting their readiness to act within their authority to alleviate public hardship.
The Cabinet has approved negotiations with refineries to return excess profit margins, aiming to develop a compensation model to assist the public. Deputy Minister of Transport Siripong Angkasakulkiat reported that the Cabinet acknowledged a report on excess profit margins at refineries. A new committee, led by the Permanent Secretary of the Ministry of Energy, has been tasked with overseeing the implementation of concrete methods for profit-sharing.
Energy Minister Ekanat Promphan has called for an urgent meeting of the Energy Policy Administration Committee to address excess profits and high gas station prices. The CGO working group has submitted its findings on energy price management to the Cabinet, which has assigned the Minister of Energy to implement the recommendations. The average refining margin has significantly increased, prompting a need to examine actual costs and negotiate with refineries.
Domestic fuel prices are currently based on refined oil prices in Singapore, which are volatile and often exceed crude oil prices. This has led to high profits for refineries while the public bears the financial burden. The government aims to collect excess profits or lower ex-refinery prices to reduce gas station prices, ensuring fairness for domestic fuel consumers.