The Ministry of Energy is set to introduce a more liberalized approach to oil imports, permitting private companies to import finished oil products. Energy Minister Pirapan Salirathavibhaga outlined the move as an effort to provide consumers with more choices amidst elevated energy prices.
The ministry’s role is to oversee the oil industry and ensure fair competition while enabling public access to reasonably priced fuel oil. Pirapan noted that lower oil prices could in turn help alleviate the rising cost of living.
Importing finished oil products – such as petrol and diesel – eliminates refining costs, which are challenging to control. Private companies equipped with storage facilities and import capabilities would therefore be allowed to participate in the process, reducing their reliance on current oil suppliers.
The energy minister clarified that the Energy Ministry’s objective is to regulate the industry, facilitating convenient and swift oil procurement in order to meet domestic demand without obstructive regulations.
Cutting energy prices, including oil, is a top government priority under Prime Minister Srettha Thavisin. However, no specific timeline has been provided for the implementation of this policy.
Thailand plays a dual role as an importer of crude oil and finished oil products, while also exporting finished oil products to neighboring countries such as Laos, Myanmar, Cambodia, Vietnam, Singapore, Indonesia and the Philippines. In 2020, Thai exports of finished oil products to these nations totaled approximately 165 billion baht. (NNT)
