CNG News: 16th August 2009

Thailand subsidizes gaseus fuels

The Government of Thailand approved a package of energy subsidies by Bt 48 billion (USD 1.4 billion) to reduce the retail price of compressed natural gas (CNG), liquefied petroleum gas (LPG), biodiesel and traditional diesel in a bid to alleviate the fuel impact in the living cost, under the critical juncture facing the global economy. The announcement was made by Minister of Energy, Wannarat Charnnukul, who explained that the price of diesel was reduced by Bt 2 (USD 0.05) per liter, while the subsidies for cooking gas (LPG) and natural gas for vehicles (NGV) will remain intact for another year, until August 2010. In this regard, the Government will spend Bt 300 million (USD 8.8 million) a month to subsidize CNG for another year. The grants will cover the losses shouldered by the Thai oil company PTT, who imports the gaseous fuel, so that the current selling price of Bt 8.50 (USD 0.24) per kilogram will remain unchanged. Also, local authorities decided to invest Bt 1.2 billion (USD 35 million) over four months to fund the conversion to NGV of about 30.000 taxis which are circulating across the Asian country.