Thailand's retail fuel prices likely to go down soon

BANGKOK, June 5 (TNA) - The Thai government, through the Ministry of Energy, is considering a plan on reducing the legal limit of crude oil reserves obliged by domestic refineries by half, from 6 per cent to 3 per cent, the move of which, if implemented, should cut retail fuel prices in the country in the near future. Energy Minister Siri Jirapongphan told journalists of the plan on June 4, noting that the 6 per cent-reserve limit currently represents a 22 day-crude oil benchmark-stock legally-imposed on all domestic oil refineries. "If the legal limit of crude oil reserves obliged by domestic refineries are reduced by half as planned, it will cut costs of the refineries, likely resulting in lower retail fuel prices in the country in the near future", the minister pointed out. Besides, the minister said, the planned measure, once implemented, will open more rooms for oil traders to either buy fuel products from domestic refineries, or import from foreign markets as their costs should become more comparable. The minister insisted, however, on the intact legal limit for fuel reserves obliged by all domestic fuel traders at 1 per cent, or about three days. Meanwhile, the minister announced that the Thai government is also considering pros and cons of the country's becoming a new permanent member of the Paris-based International Energy Agency (IEA), namely a requirement on the total petroleum reserve of all member economies, covering crude oil and fuels, at 90 days for their national energy security, but such the total reserve in Thailand now stands at about 25 days.(TNA)