Bangkok: The sudden surge in fuel prices by 6 baht per liter overnight has sent shockwaves through the general public and restaurant businesses, as highlighted by Thaniwan Kulmongkol, president of the Thai Restaurant Association. She emphasized the real-world impacts and urged the government to address the issue urgently before the public's patience runs thin.
According to Thai News Agency, Ms. Thaniwan explained that the increase in oil prices has affected every aspect of the restaurant supply chain. With over 100 items on a typical ingredient list, including vegetables, meat, and fresh produce sourced from various provinces, the rising transportation costs due to the fuel price hike are impacting restaurants significantly.
Transportation costs affect multiple stages, from farms to central markets and from there to retail suppliers near restaurants. The seafood market is particularly affected; even if fish prices remain stable, the increased fuel costs make it difficult for fishing boats and transport trucks to operate, causing shortages and price hikes in fresh produce.
The food industry is facing an early onset of the low season, which typically starts after Songkran. This shift, coupled with changes in labor structures-relying more on foreign workers-forces businesses to bear fixed labor costs year-round, even during low sales periods.
Consumers are also feeling the pinch, reducing food expenses to prioritize transportation and fuel costs. As dining out becomes less frequent, restaurant owners hesitate to raise prices, fearing customer loss and potential business closure.
Adding to the challenges, Ms. Thaniwan noted that some delivery platforms plan to increase their Gross Profit fees to 30% by April 1st. This increase would add another financial burden on restaurants already struggling with rising costs.
Ms. Thaniwan has proposed several recommendations to the government to mitigate these challenges:
- Freeze energy prices to reduce daily living costs.
- Offer tax and social security relief for SMEs.
- Negotiate with delivery platforms to delay fee increases.
- Revitalize the "Half-Price Scheme" to boost the grassroots economy and support small restaurants.
The disparity in the impact of the 6 baht fuel price increase is evident between wealthier individuals and small business owners, who are now in a state of uncertainty, awaiting government intervention.