Bangkok: Companies are poised to harness excess profits from refineries to help depress prices at gas stations. The Permanent Secretary of Energy stated that the oil crisis is the most severe in history, and is urgently using excess profits from PTT and Bangchak refineries to depress gas station prices. He expects to finalize the figures on Monday. He also explained that the two consecutive days of oil price increases were to maintain liquidity in the fund and prevent a sudden price surge.

According to Thai News Agency, Mr. Prasert Sinsukprasert, Permanent Secretary of the Ministry of Energy, revealed that the current energy situation is the most severe crisis in history. The price of diesel in the global market has soared from the normal level of US$92 per barrel to almost US$300 per barrel, or nearly three times higher. This is more severe than the record high of US$150 per barrel during the Russo-Ukraine war. As a result, the Fuel Fund, a key mechanism for compensating consumers, has a deficit of almost 50 billion baht. Although there is a loan of 150 billion baht available to support the economy for approximately another two months, a prolonged situation is extremely worrying. Managing prices during this period is difficult because it requires maintaining a balance between global market prices, the fund's financial status, and the impact on the public. The two consecutive days of oil price increases were to maintain the fund's liquidity and prevent sudden price increases that could lead to hoarding or smuggling out of Thailand. The Ministry of Energy has instructed provincial energy offices to strictly inspect gas stations nationwide the day before the price increases to prevent hoarding. At the same time, the Fuel Fund continues to subsidize liquefied petroleum gas (LPG) at approximately 30 million baht per day to prevent an impact on the cost of living and food for the public.

Regarding the pricing structure and refining margins, the calculation of oil stock (old-new) at refineries uses the Mark to Market method, which is the internationally accepted standard. Refineries must accept this risk. The refining margin is not net profit, but covers fixed costs such as water, electricity, transportation, labor, and maintenance, as well as additional costs such as war premiums, insurance, and increased crude oil prices during wartime. However, during this crisis, the added war premium resulted in excess profit (windfall). Therefore, the Comptroller General's Office (CGO) is urgently considering using the average refining margin of the past five years, at 2.43 baht, as a benchmark to compensate the public for this difference. They have already held discussions with refineries to find a balance point and have received initial cooperation from PTT and Bangchak. It is expected that the matter will be brought to a meeting on Monday to finalize the figures before considering further assistance, whether it will be immediate price reductions or targeted assistance, such as for vulnerable groups or the transportation sector. It's important to note that windfall figures vary each month.

"This crisis is considered one of the most severe in history. All parties must cooperate - the government, the private sector, refineries, oil traders, operators, and the public. The Ministry of Energy is making every effort to find a balance to protect the interests of the people, especially by utilizing excess profits or windfalls to alleviate the burden. We are confident that refineries with Thai shareholders will cooperate because this is the time to help fellow Thais overcome this severe crisis together," said Mr. Prasert.