Efforts to keep oil prices from rising to global market prices are becoming more complex. More messy and tough Recently, a working group has been divided into asking for cooperation with refineries to bring in excess profits to help subsidize energy prices. in many groups
Efforts to keep oil prices from rising to global market prices are becoming more complex. More messy and tough Recently, a working group has been divided into asking for cooperation with refineries to bring in excess profits to help subsidize energy prices. in many groups
On 29 June 2022 there was a discussion in the evening. Because the working group Some parts require a meeting to clarify the Ministry of Energy’s budget.Energy Commission At the National Assembly, the meeting began to negotiate from 6:00 p.m. to 11:00 p.m., but had not yet come to a conclusion. and thus have to continue negotiations throughout this week.
Supattanapong Phanmechaow, Deputy Prime Minister and Minister of Energy revealed that in asking for cooperation with refineries to bring in excess profits to help subsidize energy prices Should be clear within this week. without any financial assistance has been offered. have to wait for the results of the negotiations of the working group with the refinery, which format will be And still don’t know whether it is necessary to enact regulations or not. It may not be necessary to bring money to the Fuel Fund (NSC), but it will be voluntary by the refinery. within a 3 month assistance time frame.
However, the help from the refinery will be a donation. To help vulnerable people or not? It is unknown. Currently, there are several approaches. Don’t just force entrepreneurs to have time to think about anything. At least send a signal asking you to think carefully that when we are out of the water But some people still suffer. even if it is a price according to the free market mechanism, whichenergy pricehas also increased in succession I personally believe that every entrepreneur has good governance. not only take care of maximum profit but understands the problems of people, society and environment
“This matterdistilleryin what form Do not dictate or force the way to do it. including some or all And if foreign refining operators in Thailand will voluntarily support energy prices during the crisis Thailand should be a good example.”
As for the case where many parties are concerned about the fuel fund’s financial position to be negative 200 billion baht by the end of 2022, it is a matter of liquidity management of the fund and the government. The state also confirmed subsidies for diesel prices in the proportion of half the actual price according to the resolution.Cabinet (Cabinet) But in the next phase, will the oil fund gradually raise the price or not? oil fund will consider by having discussions with the subcommittee of the Ministry of Finance including a 20,000 million baht loan to enhance the liquidity of the fund It is expected to be clear by the end of July.
However, the price of diesel fuel in the world market has decreased. This does not mean that it can immediately reduce the domestic diesel retail price. But will help reduce the subsidy burden of the fund to a certain level that is still subsidized by 50%, has not reduced the subsidy to 25%, but will the fund raise the price ceiling to 36 baht per liter on July 1, 2022? No, we don’t have to look at prices this week to see how the negotiations with refinery operators are responding. If the refinery does not respond And the liquidity of the oil fund can still continue to price.
For energy price assistance to vulnerable groups such as hawkers, street vendors and motorcycles, for three months from the central budget reserves, lessons or methods of assistance will be taken through the project by half. We have won that the conditions in various target groups have been set as lessons and will initially cooperate with the Ministry of Transport to look at the types of vehicles that will help.
Chawalit Tippawanich, Chief Executive Officer and Managing Director of IRPC Public Company Limited Said the working group negotiating for cooperation to deliver the excess profit from the refining fee to enhance the liquidity of the fuel fund during the period.energy price crisis In the process of coordinating and discussing the details of the aforementioned guidelines on many issues Recently, there are 2-3 cooperation models to choose from that can be implemented. But it should be clearer soon.
By this, understand and sympathize. Must take care of all groups that are affected by many sectors. because energy prices have actually increased Therefore, many issues have been considered in detail. At the same time, the refinery which is a listed company inThe Stock Exchange of Thailand (SET.), which has shareholders that the company has to take care of Therefore, the solution must be acceptable. It took some time to consider and discuss between the government and the refinery. What will be the final conclusion? Do I have to notify the shareholders? Depends on that choice as a consequence.
“From now on for the next 6 months, what will the company’s performance be like? which admits that this is a difficult situation that cannot wait But there are doubts that many parties indicate that the refinery has a lot of profits. I have a question whether it’s true or not. and have profits in every plant or not Because each refinery has different business structure and management. Therefore, the same rules apply to all distilleries. will have unequal effects This story is very detailed. What I want most is that the guidelines come out as a single agreement and apply to all refineries. which would be difficult.”
Sources from oil refinery business operators Said that all six refineries are currently in talks with government agencies. Regarding the way to proceed to find a good solution together, initially, it was thought that the government should issue regulations, rules or laws to support the operation to be clear. and able to answer questions of all parties so as not to cause offense or litigation problems after
At the same time, keeping the difference from profitrefining value may use the law Oil Fund Act able to come into operation but had to wait for the Council of State consider the various laws carefully. And there should be a law to support children as well This should take some time to proceed. Therefore, according to the original plan, the government wants all 6 refineries to start delivering the difference in refining margins to the Oil Fund for 3 months from July-September. . 2022 may have to extend the processing time until consideration of the law. to support the operation will be completed
Atthaphon Rerkpibul, Chief Executive Officer and President, PTT Public Company Limited or PTT Said that PTT got the situation of crude oil prices during the rest of this year. will remain high at the level of 100 dollars per barrel plus or minus. Or it has an average full-year average of $103-104 per barrel. which is the highest in history As a result, the overall retail price of energy in Thailand, including oil, natural gas, NGV and LPG, remains high.
For the 2023 oil price forecast, crude oil prices are expected to weaken below $100 per barrel. If there are no unexpected situations, such as the problem of war between superpowers.Russian-Ukrainian and less severe sanctions. The factors that the price of crude oil is likely to weaken next year.
