Thai Energy Ministry to begin fuel inventory

The Energy Ministry of Thailand is ready to kick off fuel inventory checks at petrol stations across the country before the Oil Fund levies on three fuel products are temporarily suspended by the government. The contributions to the Oil Fund from the sale of 95-octane petrol, 91-octane petrol and diesel are 7.5 baht (US$0.24), 6.70 baht (US$0.21) and 2.08 baht (US$0.06) per liter, respectively. Viraphol Jirapraditkul, director- general of the Energy Business Department, said that the endorsement of the National Energy Policy Council is needed to temporarily scrap these levies. Meanwhile, ethanol producers are worried that the price gap between oil products blended with ethanol and 100% petroleum products could result in a drop in ethanol consumption. After the levies are removed, 95-octane petrol will retail at 39.84 baht (US$1.27 ) while gasohol 95, with 10% ethanol, will retail at 37.94 baht (US$1.21). Retail price for 91-octane petrol will be 35.24 baht (US$1.12), against 34.54 baht (US$1.10) for gasohol 91. Data from the Energy Business Department shows that during the first seven months of 2011, consumption of all types of alternative fuels rose because of the government subsidy. Consumption of all gasohol products rose 6%, from 11.9 million liters to 12.6 million liters per day. On the other hand, consumption of higher priced 95- and 91-octane gasoline declined 7%, from 8.3 million to 7.8 million liters a day. (August 25, 2011)