BANGKOK– Thailand’s new Energy Minister Akanat Promphan has promised big changes to refinery margin rules. He wants fairer fuel prices for regular folks who deal with steep costs and spot shortages.
He said refinery margins show the extra cash oil firms earn when they process crude into diesel or gasoline. These margins usually hover at 2-3 baht per liter. Lately, they spiked to 7-13 baht per liter. Minister Akanat labels that jump excessively, especially amid an energy squeeze from Middle East conflicts.
He proposes margin caps as one fix. Savings would flow right to lower pump prices. Businesses deserve profits, he notes. However, families and farmers shouldn’t suffer in hard times.
“I get that companies need profits,” the minister said. “But going from 2 baht to 7 baht in a crisis? That’s too much.” If needed, he mentioned a windfall tax on big gains. Above all, he puts everyday people first.
Northern Thailand Feels Fuel Crunch Most
Up north in Chiang Rai and nearby provinces, shortages hit hard. Drivers wait in long lines at gas stations. Pumps empty out fast, so cars sit with empty tanks.
Farmers struggle the most. They need diesel for tractors, pumps, and harvesters. Tight supplies and higher prices make planting or crop care tougher. One local farmer waited hours, only to find no diesel. That delayed key farm tasks.
Businesses fret too. Songkran, Thailand’s fun New Year splash fest, nears. Many worry travel costs will trap families at home. Tour guides and shops in Chiang Rai report fewer bookings from fuel jitters.
The government says national reserves hold up fine. Refineries pump out plenty overall. Yet, distribution snags and panic buys cause north and rural shortages.
Minister Akanat’s Key Action Steps
In early talks, Minister Akanat listed urgent moves:
- He will review margins and set caps to curb excess profits.
- He plans more openness, like daily fuel stock and flow reports from refineries to stations.
- He aims to stockpile better oil reserves and add controls against disruptions.
- He wants to cut consumer costs by routing margin drops straight to pumps.
Real-time checks let people track supplies on their own, he said. Currently, the monthly data misses local issues.
Plus, he schedules chats with refinery bosses to probe their earnings, from margins to stockpile wins in shaky markets.
How This Hits Farmers, Shops, and Songkran Fun
Northern farmers feel the pinch. Diesel hikes strain budgets for seeds, fertilizer, and gear. Some scale back or push back harvests. That risks food output and paychecks.
Small outfits worry as well. Delivery drivers, cabbies, and tour firms face steeper expenses. In Chiang Rai’s farm-tourism blend, folks hope for fast fixes to dodge slowdowns.
Songkran sparks water battles, family trips, and road trips. Fuel woes cloud the outlook for this year. High prices or dry pumps might nix long hauls home. Tourism pros predict less local travel cash if problems linger.
The government offers short-term aid, like subsidies and anti-hoard pleas. Northerners, though, call for speedier, solid answers.
Minister Akanat hints at wider shifts. He seeks freer electricity markets and beefed-up petroleum reserves. Thailand gains toughness against world shocks that way.
The country buys most oil abroad. So, far-off issues like the Strait of Hormuz jams slam local prices. This mess spotlights supply and pricing gaps. Experts agree that global oil sets the base price. Domestic margin and delivery tweaks, however, help Thais most.
By tackling margins directly, the minister tilts from free markets to crisis checks. He vows to balance for the firms and public ease.
