Thailand’s Energy Policy Committee decided today to set aside about 2.4 billion baht, from the Oil Fund, to stabilize domestic oil prices ahead of an anticipated global oil price hike after Saudi Arabian oil production by was cut by half as a result of Houthi rebels’ drone attacks on Saudi oil installations over the weekend.
Energy Minister Sontirat Sontijirawong said today that, if the Dubai light crude remains stabilized at US$65 per barrel, domestic oil prices in Thailand will not fluctuate much and the 2.4 billion baht allocated from the Oil Fund would be sufficient to stabilize domestic oil prices for up to three months.
The minister explained that the Energy Ministry would cut the contribution to the Oil Fund by oil companies by one baht per litre of benzene and 60 satang per litre of diesel so that they can stabilize their pump prices.
This means that monthly contributions to the Oil Fund by oil companies, amounting to about 1.21 billion baht, will dry up during the three-month period.
To cope with a daily shortfall of about 170,000 barrels of crude from Saudi Arabia, Sontirat said that Thailand expects to secure oil from Oman and United Arab Emirates instead.
As of September 16th, Thailand’s oil reserves were 6,407 billion liters, which are enough for 54 days and 12-day reserves of LPG for household, transport, and industrial use.
Household use of LPG will be given the top priority in case the global oil situation does not improve and LPG reserves run short, assured Mr. Sontirat.