The Energy Policy Administration Committee (EPAC) has indicated that the cost of liquefied petroleum gas (LPG), which is used for domestic cooking gas, will progressively increase over the next three months.
As the government attempts to contain the huge investment to fund an LPG substitution program, EPAC says that the price of LPG paid by consumers will unavoidably be forced to rise towards the current market price.
Mr. Kulit Sombatsiri, permanent secretary of the Ministry of Energy, said that the price of LPG, which is currently 363 baht per standard 15-kilogram cylinder, will gradually increase from 378 baht next month to 408 baht in September, approaching the current market price of 460 baht.
The new prices will be applied in Bangkok and neighbouring provinces, while consumers in other provinces are likely to spend more money due to the added freight charges.
Mr. Kulit said the new pricing measures are also needed to increase the cash flow of the country’s Oil Fuel Fund, whose funds have been used to support recent diesel and LPG substitution programs.
The LPG price had been set at 318 baht for several months before the government decided to raise it to 333 baht in April and then gradually to 363 baht this month.
To ease the economic pressure on low-income earners, the authorities agreed to extend a 100-baht reduction on LPG until September 30. Currently, four million people are receiving discounts under the public assistance program.
