BANGKOK, 24 June 2015 – The Ministry of Energy has reiterated its need to raise excise duty on liquefied petroleum gas (LPG), shrugging off operators’ and users’ calls for a rethink of its plan.
Energy Minister Narongchai Akaraseranee said excise duty on LPG must increase to ensure fair treatment for all groups of energy consumers. He explained excise duty levied on LPG in the transport sector was as low as 1.10 baht per liter, whereas petrol users had to pay as much as four to five baht for the equal amount of fuel.
According to Mr. Narongchai, LPG duty excise will increase step by step. That of natural gas for vehicle (NGV) will also be adjusted upwards when its retail price already reflects its real cost.
Users of ethanol E85 will be exempted from the duty hike, as the Energy Ministry has planned to lure motorists into turning to alternative fuel so as to help boost the income of growers of tapioca and sugarcane – the raw materials for ethanol.
Mr. Narongchai added that the government would continue its 21st round of survey of 29 petroleum sources, if the National Reform Council approves of the plan to amend the Petroleum Act, B.E. 2514 (1971).
