Price hike due on NGV

The Ministry of Energy is planning to propose a price hike for natural gas for vehicle (NGV) to the new government in order to correspond to the actual production cost.

After the meeting of the committee responsible for solving the NGV shortage problem, Permanent Secretary for Energy Norkhun Sitthipong announced that the increase of the NGV price in line with its cost of production had been approved in principle. At present, the wellhead price is at 8.40 THB per kilogram; however, the proposed hike will take into account both the wellhead price and the transportation cost.

The Petroleum Institute of Thailand has thus been assigned to collect data on the NGV transportation costs for all provinces across the country in order to determine the exact retail prices before presenting them to the incoming government for consideration. Price ceilings will also be set for remote areas.

As for the rate of adjustment, Mr Norkhun elaborated that the NGV price would be raised three times a year or once every four months, similar to the normal increase of the energy adjustment charge (Ft). He added that the floating of the NGV price would reflect the actual production cost and provide fairness for distributors and consumers alike.

According to the Energy Ministry’s 15-year alternative energy development plan, the use of NGV is targeted to help slash the consumption of benzene by 20 percent. However, the current NGV usage can substitute only 8 percent of benzene.


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