Number of LPG pumps rises as motorists switch from diesel - Bangkok Post
Number of LPG pumps rises as motorists switch from dieselNumber of LPG pumps rises as motorists switch from diesel
The number of filling stations for liquefied petroleum gas has increased as more motorists switch from diesel to LPG, a trend stimulated by the expiry of the diesel excise tax exemption last month, according to the Department of Energy Business.
The tax waiver of 5 baht a litre ended on July 20, leading the Oil Fuel Fund Office (OFFO) to announce it would keep the diesel price unchanged at 31.94 baht a litre, using money from Oil Fuel Fund to offset the price.
However, some motorists still converted to using LPG, which remains under the state price subsidy programme.
The pump price of LPG is now 25.8 baht a kilogramme.
The OFFO is subsidising LPG at 1.32 baht per kilogramme, and diesel at 5.18 baht a litre.
"Global oil prices tend to remain high, causing motorists to use LPG instead of diesel," said Nanthika Thangsupanich, director-general of the Department of Energy Business.
With more motorists using LPG, the number LPG filling stations had increased to 1,628 as of June, up from 1,601 in June last year.
According to the department, total fuel consumption grew by 2.7% to 156.7 million litres per day during the first six months of this year.
Consumption of petrol, jet fuel and fuel oil increased, but diesel usage dropped by 3.7% to 72.3 million litres per day.
Total LPG consumption also fell slightly, by 1.4% to 32.7 million kilogrammes per day.
The drop resulted from a decrease in petrochemical production. However, demand for LPG in the transport sector is unaffected.
Ms Nanthika expected diesel consumption in the second half of the year to keep decreasing, by 1.9%, due to rising global oil prices.
OFFO director Wisak Watanasap said earlier his office will keep the domestic retail price of diesel unchanged as long as the diesel reference price does not exceed US$110 per barrel.
Between January and June, the volume of imported fuels rose by 4% to 1.07 million barrels per day (BPD).
Of the total, the import of crude oil increased by 3.1% to 0.991 million BPD while its value grew by 98% to 104.7 billion baht per month.
Exports of refined oil dropped by 10% to 155,274 BPD.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.