Thailand to deregulate LPG for industrial use

Thailand has decided to deregulate liquefied petroleum gas (LPG) prices for the industrial sector, starting July this year, but will continue to subsidize the fuel for the household and transport sectors, according to Prime Minister Abhisit Vejjajiva. Abhisit said the floatation of the price of LPG for industrial use would save 7.3 billion baht (US$238.99 million) in subsidies, helping shore up the balance in the Oil Fund. The state-run mechanism is used to subsidize certain fuels, largely LPG and more recently diesel fuel. Between now and July, the energy ministry will work out measures to prevent the illegal siphoning of LPG intended for the household and transport sector to take advantage of the price difference. (January 9, 2011)