Bangkok: The Federation of Thai Industries (FTI) has announced that escalating energy costs are leading to an increase in product prices across Thailand.
According to Thai News Agency, the FTI has reported that a rise in energy, raw material, and transportation expenses is driving product prices up by 8-10%, with steel poised for two additional price hikes in the coming months.
Mr. Kriengkrai Thianukul, President of the FTI, highlighted the ongoing crisis of rising living and production costs in the country, largely due to the conflict in the Middle East. He noted that high energy prices and raw material shortages are exacerbating the situation. Transportation costs are set to rise by 20-25%, and commodity prices are expected to increase by 8-10%, further inflating the cost of living at a time when incomes remain unchanged. Mr. Kriengkrai anticipated that the next electricity bills could rise due to deregulation of diesel fuel prices, impacting the public significantly. He urged the government to introduce targeted measures to support vulnerable groups and emphasized the need for immediate action to support small and medium-sized enterprises (SMEs) to ensure their survival and prevent layoffs.
Mr. Nawa Chantanasurakorn, Vice President of the FTI, explained that the steep rise in energy costs, particularly fuel oil used in steel production, along with increased import scrap metal prices and transportation costs, has put a strain on steel manufacturers. As a result, they plan to increase steel prices in April, with a potential further hike in May if fuel oil and raw material prices continue to climb.
The election for the 17th FTI President is also garnering attention. Mr. Kriengkrai stressed the importance of having a capable and transparent selection process for the new board of directors, free from political influence, to maintain the organization's integrity. The election for the new board of directors, comprising 372 members, took place, with the new president expected to be elected in April, succeeding Mr. Kriengkrai.
The race for the FTI presidency initially featured two candidates: Mr. Apichit Prasoprat and Mr. Chana Phoomi. However, Mr. Chana withdrew, citing his decision as a principled move to protect the organization and prevent further public conflict. He endorsed Ms. Pimjai Leeissaranukul to run in his place, ensuring a continued focus on innovative leadership within the organization.