Bangkok: The Minister of Energy is preparing to propose a decree to the Cabinet for approval to borrow money to continue subsidizing oil prices. The Minister confirmed that a bill to borrow money for this purpose is imminent and will soon be submitted. He noted that while oil reserves remain available, transportation issues and increased sales have necessitated urgent negotiations to boost oil shipments. The national oil storage facility is prepared to operate continuously, but the Secretary-General of the Council of State warned that borrowing should be limited and no country can completely freeze prices.
According to Thai News Agency, Energy Minister Attapol Rerkpiboon discussed oil price stabilization before a Cabinet meeting, indicating that the Oil Price Control Center would convene to manage prices. The use of the Oil Fund for stabilization is expected, though the timeframe requires further discussion. The fund previously faced a deficit of over 100 billion baht, and while it hasn't reached that level yet, ongoing discussions will determine its continued use.
The Ministry of Energy is exploring additional options, such as consulting with oil refineries and traders. Thailand maintains oil reserves sufficient for over 90 days, seeking alternative oil sources due to the Strait of Hormuz disruptions. Current reserves extend beyond 100 days. Despite fuel shortages at gas stations caused by transportation challenges, refineries are operating at full capacity. Requests for 24-hour depot operation have been made to alleviate transportation restrictions.
Regarding claims of reduced fuel quotas by gas station operators, Minister Atthapol clarified that reductions were due to increased dispensing rather than a lack of supply. Cooperation has been sought to expand fuel distribution routes to balance transportation demands. Public concerns over fuel reserves are attributed to transportation bottlenecks, with depot operators now working around the clock to address these issues.
Permanent Secretary of the Ministry of Energy, Prasert Sinsukprasert, suggested increasing the biodiesel blend as a long-term measure. This proposal is under Cabinet consideration. Meanwhile, the public is encouraged to conserve energy, and both private and public sectors are urged to assist in fuel conservation to prevent exacerbating the situation.
PTT and refineries continue regular oil procurement, with reserves increasing. However, fuel shortages persist due to transportation inefficiencies and public panic buying. Fuel hoarding has been identified, with potential legal actions against those responsible. The government is exploring borrowing options to manage oil prices, with an emergency decree likely required if collateral-free borrowing is not feasible.
Mr. Pakorn Nilapraphan, Secretary-General of the Council of State, confirmed no oil shortage exists, attributing issues to transportation and panic buying. The Prime Minister has tasked the Ministry of Energy with finding solutions, recognizing the significant budget impact. The Secretary-General emphasized limited subsidies to avoid market distortion, acknowledging that rising oil prices are a global issue.