BANGKOK, 26 September 2011 -In a Q&A session, Bangkok Senator Ms. Rosana Tositrakul asked the Prime Minister for explanation as to why LPG prices for household and automobiles have been floated when the fuel is over supplied.
The Senator claimed that the decision to float the LPG price on 1 October 2011 was inconsistent with the demand and supply system since there was no shortage of LPG in the auto industry or scarcity in household use.
The Senator further said that the price of LPG should be calculated from the price at the separation plants in the Gulf of Thailand. Ms. Rosana asked that the price should be determined according to the production cost of LPG in the country.
While the domestic demand for petrochemicals is high, Ms. Rosana said the price could be raised accordingly, and if imports of petrochemicals for the industry are needed, importers should shoulder the price themselves. She voiced concerns over the financial responsibility for the government when LPG prices are floated while the private sector would solely benefit from this scenario.
Meanwhile, Energy Minister Mr. Pichai Naripthaphan said the price of LPG was not floated on 1 October 2011 as reported; however, he added that once the ASEAN Economic Community integration takes place, the LPG prices would be floated as it would be a heavy burden for the government to keep the prices down.
