Thailand: Domestic petrol consumption is likely to pick up in the fourth quarter this year

Domestic petrol consumption is likely to pick up in the fourth quarter this year on signs of a recovery after declining since late last year, says one of the world’s top oil companies, the Bangkok Post reports. Pissawan Achanapornkul, chairwoman of Shell Companies in Thailand, said the industrial sector accounted for 40% of oil usage and its downturn was responsible for lower consumption. “Despite sales volume at petrol stations remaining healthy during the price drop, the decrease of between 20% and 30% in industrial production was too much to offset,” she said on June 30. Shell strongly supported the government’s plan to mandate a higher biofuel content in biodiesel, but insists a biofuel subsidy is crucial, as biofuel is now priced at 31 baht a litre, much higher than the ex-refinery price of 17 baht for diesel. In another development, transport operators on June 30 issued a statement against the government’s plan to raise the excise tax on diesel, saying up to 400,000 jobs would be lost this year unless government aid is provided. The local price has not decreased as it should from 44 baht in mid-2008 when crude cost $147, he said. (July 2, 2009)