Bangkok: The Prime Minister has revealed that negotiations to reduce refining margins are nearing a conclusion.
According to Thai News Agency, discussions have been ongoing with refineries, who have presented various figures for consideration. The Prime Minister emphasized that while efforts are being made to negotiate a price reduction, excessive coercion should be avoided to prevent potential issues arising from refining shutdowns. Prices must align with market mechanisms, and the Prime Minister cautioned that subsidies cannot be sustained indefinitely.
Prime Minister and Minister of Interior Anutin Charnvirakul addressed the Fuel Cost Assessment Committee's delay in concluding the reduction of refining costs, stating that a resolution is imminent. Reports indicate that all parties are cooperating effectively, with an expected conclusion within the next week. Mr. Anutin underscored the necessity of ensuring that oil refineries remain viable, warning against pressuring them to a point where continued operations become unfeasible. He expressed confidence that the oil supply, especially during Songkran, will be adequate.
During a field visit, Mr. Anutin encountered public grievances regarding high fuel prices. He explained that despite most complaints, the Fuel Fund continues to subsidize the price by approximately 17 baht per liter. As this subsidy is not sustainable long-term, the government is exploring alternative methods to alleviate the public burden, including negotiating refining costs. The Prime Minister advocated for public cooperation, emphasizing that Thailand relies entirely on imported fuel and urging more economical fuel usage during crises.
Mr. Anutin clarified that the government is not shifting the burden onto the public but suggested practical measures such as carpooling and increased usage of electric vehicles. He advised against stockpiling fuel, which could lead to shortages within the system. In response to whether the energy crisis will be addressed in the parliamentary policy statement, Mr. Anutin confirmed that discussions will include restructuring the energy sector amid global crises and preparing for potential oil shortages and price volatility.
Addressing the investigation into 57 million liters of missing oil, Mr. Anutin reported that agencies are expanding their probe and are ready to prosecute those involved in price gouging and hoarding, which are illegal acts. The investigation allows for better control over oil distribution, ensuring it reaches the public and gas stations, rather than being hoarded for speculation. He praised the authorities for their thorough investigation.
Mr. Anutin disclosed that he maintained silence on the matter to manage the situation and prevent leaks. He noted that authorities have tracked ships appearing to intentionally delay oil delivery to exploit rising prices. By monitoring these movements, the government aims to prevent further leaks and ensure proper control over oil quantities.
In anticipation of the special cabinet meeting on April 6th, Mr. Anutin mentioned that the oil issue will be discussed, including the establishment of a new Oil Price Control Center. The government is focused on controlling oil prices and identifying additional measures to assist the public. Deputy Prime Minister and Minister of Finance, Mr. Ekniti Nitithanpraphas, has proposed a preliminary model to reduce living costs, acknowledging the global market's influence on oil prices and the impracticality of continuous subsidies. Alternative measures will be implemented to support the public.