BANGKOK: Thailand's Energy Ministry will recalculate oil refining and marketing costs by April 6 as part of efforts to control rising fuel prices, the finance minister said on Thursday. (April 2).
The new calculations will be put to the cabinet and should lead to lower energy prices, Finance Minister Ekniti Nitithanprapas (pic) told a briefing. Ekniti was appointed to head a newly established committee to review fuel cost structures and pricing.
* Refining-related calculations may be too high under present conditions, and therefore, pump prices for consumers should be lower, he said.
* The energy ministry has been instructed to recalculate appropriate refining and marketing costs, verify the actual impact of war-related premiums, and propose a mechanism to ensure lower costs, Ekniti said.
* The government also wants to verify the real "war premium" and other extra costs, such as freight and insurance, to determine the true cost burden on refiners, he said.
* The study must be completed by April 6, so it can be submitted to the cabinet at the earliest meeting, Ekniti said.
* Prime Minister Anutin Charnvirakul's new cabinet will hold its first meeting on April 6 after being sworn in before the king.
* Anutin said the government will explore all possible measures to ease the burden of high oil prices on the public, while also ensuring safeguards are in place to prevent hoarding.
* The recalculation of oil costs follows a series of support measures designed to mitigate the economic impact of rising oil prices.
* The government is studying an oil tax cut and will support the state Oil Fuel Fund, which stabilises oil prices, with a borrowing guarantee of 150 billion baht (US$4.6 billion).
* Thailand's consumer spending could drop by 3.7% over the year to about 130 billion baht ($3.98 billion) during the upcoming Thai New Year holidays taking place from April 13-15, with higher oil prices a factor, according to the University of the Thai Chamber of Commerce. - Reuters
