Wednesday, September 23, 2009

NATIONAL ENERGY PANEL MULLS INCREASING MARGINS FOR RETAILERS

       The National Energy Policy Committee will review oil retailers' marketing margins to see if there is a possibility of increasing it from Bt1.50 to Bt2.20 per litre owing to rising investment costs, a source from the committee said yesterday. According to a study by the Energy Policy and Planning Office, the new margin is based on a 12 per cent return on investment for a medium-sized two-rai petrol station.
       However, the source said this rate does not take into account returns on non-oil businesses such as convenience stores or car-cleaning services.
       The study also pointed out that the margin for liquefied petroleum gas (LPG) should be raised from Bt3.257 to Bt3.03 per kilogram.
       "The office has presented the study, but we will discuss if it |could be used as an official reference point at the meeting," the source said.
       The committee will also consider incentives to boost consumption of E85 gasohol, which could prompt the Oil Fund to increase the subsidy from Bt7.13 per litre to Bt10.
       The higher subsidy would lower the cost of the high-ethanol-content fuel by Bt3 per litre from Bt22.72 at present.
       The panel will also consider raising the Oil Fund's budget to convert LPG taxis to ones driven by natural gas for vehicles (NGV) and the pricing structure for purple oil - the high-sulphur oil used for small fishing boats.

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