PUBLISHED : 30 Aug 2024 at 05:16
PTT Oil and Retail Business (OR) has expressed optimism regarding the Energy Ministry’s initiative to enhance regulations on oil trading and pricing in response to crude oil volatility. This comes amidst mounting concerns about potential repercussions on oil retail operations.
Following remarks by caretaker Energy Minister Pirapan Salirathavibhaga, who outlined plans for empowering energy authorities to regulate domestic oil and cooking gas prices through taxation and subsidies under forthcoming legislation, the company sought to reassure stock market investors.
The proposed legislation includes establishing a new commission tasked with determining suitable tax rates for oil products. Currently, this responsibility falls under the Finance Ministry; however, implementation of the new law will centralize tax collection within financial departments.
Consequently, the Oil Fuel Fund Office will be dissolved, allowing the new commission to oversee the fund, which has been experiencing significant losses attributed to oil and gas subsidies.
Additionally, it is reported that energy authorities are aiming to regulate both ex-refinery and retail oil prices.
According to OR, the impending law is not expected to impede profitability among oil retailers. Wilaiwan Kanjanakanti, OR’s senior executive vice-president for finance, affirmed that officials will refrain from implementing overly strict price controls that could undermine marketing margins—the revenue oil retailers earn after costs are deducted.
Wilaiwan emphasized that energy officials have been well-informed about the oil sector, having received comprehensive data from OR during the legislation process.
In related news, Wilaiwan addressed the decline in OR’s domestic oil retail market share, which slipped from 40% to 39% by the end of June. She attributed this decrease to reduced state diesel price subsidies—now set at 33 baht per liter—and rumors regarding unfair sales practices at a PTT petrol station in Saraburi.
