Oil Price Hike Under Scrutiny: Former Minister Alleges 'Rigged' System

The video opens with scenes of people rushing to fill their tanks after a sudden announcement of a 6 baht per liter oil price increase, effective immediately.

Former Minister of Energy, Pirapan Saleerath, expresses shock and anger over the price hike, calling it a 'robbery' and questioning the market's fairness.

Pirapan questions the rationale behind the 6 baht increase, emphasizing the need for clear explanations and a transparent calculation process.

The discussion highlights that oil prices in Singapore, a reference market, have actually decreased, contradicting the basis for the domestic price hike.

Pirapan explains the complex subsidy system, revealing that the actual cost to consumers is significantly higher than the pump price due to accumulated subsidies.

Pirapan criticizes the Oil Fund Committee's (กบน.) decision-making process, particularly the late-night meeting and the lack of transparency in their calculations.

There are suggestions that the 6 baht increase was pre-determined ('ธง') before the committee meeting, raising concerns about undue influence.

Pirapan reveals he never attended committee meetings during his tenure as minister because he disagreed with their working methods and lack of accountability.

Pirapan proposes establishing a national oil reserve as an alternative to the current oil fund, which he believes would enhance energy security.

He explains that Thailand cannot join the International Energy Agency (IEA) as a full member because it lacks a national oil reserve of at least 90 days.

Pirapan reiterates his disagreement with subsidizing based on assumed losses rather than verified actual losses, especially when the calculation basis is unclear.

Frustrated with the existing system, Pirapan decided to pursue new legislation to reform oil management, including the creation of a national reserve.

Pirapan suggests that various entities within the oil supply chain, from refineries to distributors, benefit from the current system.

He criticizes the government for not providing clear data on oil production, distribution, and actual market conditions, leading to public confusion.

Pirapan dismisses claims that industrial users are competing with regular vehicles at gas stations for fuel, explaining the logistical differences.

He reminds that fuel is a controlled product under the Ministry of Commerce, granting the ministry authority to regulate prices.

Pirapan questions the Minister of Commerce's statement about lacking authority, asserting that the law grants them power to control prices of controlled goods.

He criticizes the government's excuse that price increases are necessary to prevent illegal exports, arguing that law enforcement should handle such issues.

Pirapan summarizes that the explanations for oil shortages and price hikes—transport issues, hoarding, industrial demand—have been debunked.

He insists on daily clarification from refineries and distributors with supporting data to ensure transparency and public understanding.

Pirapan notes that a single 6 baht increase is unprecedented, even during past crises like the Russia-Ukraine war or Middle East conflicts.

The discussion touches upon the oil fund's deficit of 35 billion baht, suggesting the price hike is partly to alleviate this burden.

Pirapan reiterates that subsidies should be based on actual, verifiable losses, not on hypothetical or assumed figures.

Pirapan explains his efforts to enact new laws, including the creation of a national oil reserve, to replace the current flawed system.

He proposes using oil reserves to stabilize prices, creating an 'oil-for-oil' system that eliminates the need for cash subsidies and public contributions.

The national oil reserve, he argues, would transform the current oil fund's debt into a national asset.

Pirapan recounts his attempts to push for these new laws during his ministerial tenure, which were ultimately stalled due to government changes.

Despite being a coalition partner, Pirapan emphasizes his commitment to speaking out against policies he deems incorrect.

He questions the reliance on Singapore's oil prices, asking why Thailand cannot determine its own pricing based on domestic costs.

Pirapan highlights that refineries claim their cost data is confidential, preventing the Ministry of Energy from verifying it, unlike the Ministry of Finance for tax purposes.

He mentions issuing a ministerial announcement requiring the disclosure of crude oil costs, a step towards greater transparency.

Analysis revealed that Thailand's crude oil purchase costs were higher than global market prices, prompting further investigation.

Pirapan proposes a 'Cost-Plus' system for oil pricing, which would use actual production costs plus a reasonable profit margin, replacing the Singapore benchmark.

He explains Singapore's higher prices are due to their focus on export profits, contrasting with Thailand's domestic consumption needs.

Concerns are raised about some refineries purchasing crude oil through intermediary companies, potentially inflating costs.

The actual cost of refining crude oil into finished products remains unknown, hindering accurate pricing.

Pirapan suggests adopting internationally recognized standard prices for crude oil and refining costs as a basis for domestic pricing.

He argues for a regulated profit margin, suggesting international benchmarks of 10-12% for oil companies.

Pirapan concludes that the current oil market in Thailand is not a free market, as companies consistently report profits and are subsidized when losses occur.

He predicts further oil price increases if the current system persists, benefiting those who profit from the situation.

Pirapan reiterates his long-standing call for the government to reduce excise taxes on fuel to lower prices for consumers.

Pirapan maintains his critical stance on government policies, emphasizing the importance of speaking truth regardless of political alliances.

He states his intention to provide information to the government to encourage necessary policy reforms for the benefit of the public.