Numerous requests to open new LPG stations

BANGKOK, March 4 (TNA) -- The number of requests to build new liquefied petroleum gas (LPG) stations remains high in contrary to LPG sales due to concerns about a stricter control that will double costs in the near future. Witoon Kulcharoenwirat, director-general of the Department of Energy Business, said requests to build new LPG stations were increasing although the LPG price and its sales in the transport sector were declining. Operators think that if a new law on LPG stations takes effect, the cost for the opening of a new LPG station will double, he said. Regarding the draft law presently being scrutinized by the Council of State, Mr Witoon said it would require an empty buffer zone covering about 10 square meters around an LPG station. "With the new law, the construction cost of an LPG station will double from at least 5 million baht. So, requests for the construction of new stations are increasing despite plunging LPG sales," Mr Witoon said. There were 2,059 LPG stations in the country last year, compared with 1,966 in 2014. Chisanungpong Rungrojngamcharoen, president of an LPG trader association, said LPG station owners could survive thanks to a 10% margin in the LPG price for the transport sector. He admitted that the new law would raise costs. Besides, he agreed with the government's plan to raise the excise tax on LPG for vehicles by 2-3 baht per kilogram. (TNA)