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Thailand to extend cap on diesel prices to help consumers

October 21/2021

MOSCOW (MRC) -- Thailand will extend its diesel price cap of 30 baht (USD0.8987) per liter beyond this month, its deputy prime minister said on Wednesday, as global oil prices put a strain on consumers and an economy struggling from the pandemic, reported Reuters.

The support will be financed by the country's oil fund and a loan, Deputy Prime Minister Supattanapong Punmeechaow, who is also energy minister, told a news conference.

He did not provide a timeframe for how long the price cap, which was due to end this month, would be in place.

However, the current oil fund of about 9 B baht (USD269.5 MM) and a loan of 20 B baht should support the price freeze for four to five months, if global oil prices stay at USD87.5 per barrel, Supattanapong said.

"By that time, we expect oil prices to gradually fall due to a warmer climate," he said.

If the funds are still insufficient, however, the energy ministry will work with the finance ministry on other measures, including a possible excise tax cut, Supattanapong said.

We remind that, as MRC wrote before, PTT Global Chemical (PTTGC) is in plans to undertake a brief shutdown for maintenance at its low density polyethylene (LDPE) plant in October. However, the exact dates of the turnaround were not given. Located at Map Ta Phut in Thailand, the LDPE plant has a production capacity of 345,000 mt/year.

According to MRC's ScanPlast report, July estimated LDPE consumption in Russia grew to 52,280 tonnes from 45,190 tonnes a month earlier. Russian producers raised their PE output, imports also increased. Russia's estimated LDPE consumption was about 332,840 tonnes in the first seven months of 2021, up by only 1% year on year. PE production and exports decreased, whereas imports increased.
Author:Margaret Volkova
Tags:PE, crude and gaz condensate, LDPE, petrochemistry, PTT Chemical, Thailand.
Category:General News
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