Energy Plans to Cut Living Costs: Adjust Power Tariffs, Control Oil Prices, Check Refineries

Thansettakij•Economy•1d ago

Reader Briefing

Thailand's Ministry of Energy is implementing a multi-pronged strategy to lower living costs by adjusting electricity pricing, controlling oil prices, and scrutinizing refinery profits.

•The Ministry of Energy plans to reform electricity tariffs, encourage solar panel installation, and promote clean energy for new industries.
•Measures are being taken to control oil prices, including reviewing refinery profits and adjusting the Oil Fund's mechanisms.
•The government aims to prevent private entities from dictating prices and will actively regulate the energy sector to protect public interest.

Overview

•The Minister of Energy announced plans to adjust electricity tariffs to a tiered system, where higher consumption incurs higher costs.
•The Ministry of Energy will promote solar panel installation by reducing installation barriers and enabling electricity sales back to the grid.
•The reliance on imported LNG contributes to the high cost of electricity, despite domestic production exceeding 50%.
•The Ministry of Energy is reviewing the pricing mechanism for fuel oil after identifying abnormal profits for refineries.
•Oil refineries are expected to share the burden with the public during this period of high costs.
•The Oil Fund mechanism will be used in conjunction with refinery gate prices to address the price crisis, instead of reducing excise tax.
•The Ministry of Energy has ordered the Department of Energy Business to collect data from refineries to retail stations to prevent exploitation.
•The Ministry of Energy plans long-term solutions including increasing national crude oil reserves and promoting biofuels like biodiesel and ethanol.

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Source: Thansettakij (Original)

Key Quotes

Minister of Energy

"In this situation, oil refineries must share the burdens and joys alongside the public."

ในสถานการณ์แบบนี้โรงกลั่นจะต้องเฉลี่ยทุกข์เฉลี่ยสุขไปพร้อมกับประชาชน

Minister of Energy

"I confirm that the private sector will not be allowed to control prices; the government itself must supervise the private sector to protect the benefits of the people."

ยืนยันว่าจะไม่ยอมให้เอกชนมาเป็นผู้กำกับราคา แต่รัฐบาลเองจะต้องเป็นผู้กำกับเอกชน เพื่อปกป้องผลประโยชน์ของพี่น้องประชาชน

Key Entities

Person

Ekkanut Promphan(นายเอกนัฎ พร้อมพันธุ์)

Minister of Energy of Thailand, announcing measures to reduce living costs.

Organization

Ministry of Energy(กระทรวงพลังงาน)

The Thai government ministry responsible for energy policy and regulation, implementing plans to lower living costs.

Committee for Studying the Appropriateness of Fuel Oil Pricing(คตร.)

A committee whose data on fuel oil pricing is being used by the Ministry of Energy.

National Energy Policy Committee(กพช.)

The committee that approved the decision to maintain electricity prices.

Department of Energy Business(กรมธุรกิจพลังงาน)

An agency under the Ministry of Energy tasked with collecting data on fuel distribution and sales.