Effects of planned LPG price hike under study

The Energy Policy and Planning Office (EPPO) under the Ministry of Energy is studying possible impacts on the industrial sector from the Liquefied Petroleum Gas (LPG) price adjustment, believing that the move will not much affect capital investment in the sector.

According to EPPO Director-General Viraphol Jirapraditkul, the ministry has conducted a study to see how much the operating cost of the industrial sector will be affected once the LPG price adjustment commences on March 2011.

EPPO Officials have been dispatched to ceramic and glass industries in the northern province of Lampang. It is believed that LPG price increase will not cause the operating cost of those industries to rise much. Besides, the price adjustment is expected to reduce LPG imports by 30-40% as manufacturers will turn more to liquefied natural gas (LNG).

The ministry has therefore prepared several measures to assist entrepreneurs in changing boilers used in their businesses if they change to use LNG. Financial assistance for the procedure is expected to be drawn from the fuel oil fund.

In response to a call by the Federation of Thai Industries to help the industrial sector after the new LPG price’s enforcement, Mr Viraphol said the ministry is urgently exploring appropriate measures.

Source: http://thainews.prd.go.th/en/news.php?id=255401310020

Share This Post