Govts give in to fuel price appeals
Saturday, May 31, 2008
THAILAND moved yesterday to ease the pain of record high oil by lowering prices, while the British government set out extra measures to help the poor and boost energy efficiency.
Booming oil and energy prices have spawned protests across the world and are creating fiscal and political headaches for governments. In Asia, where many countries subsidise or otherwise control the price of fuels, the issue has become acute.
Thailand was the latest to buckle. The government said yesterday the country's four state-run refineries would sell diesel to bus operators in Bangkok at a discount of 3 baht (9.4 US cents) per litre.
The four refineries, all affiliates of Thailand's biggest oil and gas firm PTT PCL, agreed to supply 122 million litres of cheaper diesel per month to bus companies struggling to hold fares down, Energy Minister Poonpirom Liptapanlop said.
The scheme starts on June 1 and is set to run for six months.
"This is a voluntary decision by the four refiners based on their willingness to help ease the people's burden," Poonpirom told reporters after a meeting with the refiners chaired by Prime Minister Samak Sundaravej.
The decision followed a strike by private bus operators on Thursday in Bangkok after a court temporarily blocked their plans to hike fares.
In Britain, households where more than 10 per cent of income is spent on energy bills will get special help, including home insulation aid, microgeneration and information sharing, the government announced yesterday.
"These new measures will make homes across the country more energy efficient and give people at risk of fuel poverty a boost where they need it most," said Environment Minister Phil Woolas.
Over the past week or so as oil touched a record US$135, Indonesia, Taiwan and Sri Lanka have raised regulated fuel prices, forced into unpopular action by the unsustainable cost of subsidies.
India is expected to take a decision on raising prices in the next two to three days, with key political leaders expressing willingness to tackle mounting losses at state oil firms.
But China, which uses nearly three times as much fuel as India, was unlikely to adjust prices until after the Olympics. But shortages there, which started more than a fortnight ago, have hit at least half a dozen Chinese provinces on the east.
South Korea said it could lower taxes on diesel in an effort to give its transportation and auto makers some breathing space.
"Soaring oil prices are a big concern ... and the government should do something to ease price pressure for those highly dependent on diesel," South Korea's Vice Finance Minister Choi Joong-kyung said in a speech yesterday.
Truck drivers, bus associations and auto manufacturers have all demanded the government lower taxes on diesel, threatening strikes otherwise, or fare hikes which would add further pressure to already high inflation.
In Britain, truck drivers caused road chaos in London this week in a protest to demand government help over rising fuel prices. Across the English Channel, Dutch truckers called on motorists to honk their horns to push for lower fuel taxes.
France has called on the Group of Eight industrialised nations to act together to restore oil prices to a more bearable level, warning the fuel price surge threatens economic growth.Reuters
Booming oil and energy prices have spawned protests across the world and are creating fiscal and political headaches for governments. In Asia, where many countries subsidise or otherwise control the price of fuels, the issue has become acute.
Thailand was the latest to buckle. The government said yesterday the country's four state-run refineries would sell diesel to bus operators in Bangkok at a discount of 3 baht (9.4 US cents) per litre.
The four refineries, all affiliates of Thailand's biggest oil and gas firm PTT PCL, agreed to supply 122 million litres of cheaper diesel per month to bus companies struggling to hold fares down, Energy Minister Poonpirom Liptapanlop said.
The scheme starts on June 1 and is set to run for six months.
"This is a voluntary decision by the four refiners based on their willingness to help ease the people's burden," Poonpirom told reporters after a meeting with the refiners chaired by Prime Minister Samak Sundaravej.
The decision followed a strike by private bus operators on Thursday in Bangkok after a court temporarily blocked their plans to hike fares.
In Britain, households where more than 10 per cent of income is spent on energy bills will get special help, including home insulation aid, microgeneration and information sharing, the government announced yesterday.
"These new measures will make homes across the country more energy efficient and give people at risk of fuel poverty a boost where they need it most," said Environment Minister Phil Woolas.
Over the past week or so as oil touched a record US$135, Indonesia, Taiwan and Sri Lanka have raised regulated fuel prices, forced into unpopular action by the unsustainable cost of subsidies.
India is expected to take a decision on raising prices in the next two to three days, with key political leaders expressing willingness to tackle mounting losses at state oil firms.
But China, which uses nearly three times as much fuel as India, was unlikely to adjust prices until after the Olympics. But shortages there, which started more than a fortnight ago, have hit at least half a dozen Chinese provinces on the east.
South Korea said it could lower taxes on diesel in an effort to give its transportation and auto makers some breathing space.
"Soaring oil prices are a big concern ... and the government should do something to ease price pressure for those highly dependent on diesel," South Korea's Vice Finance Minister Choi Joong-kyung said in a speech yesterday.
Truck drivers, bus associations and auto manufacturers have all demanded the government lower taxes on diesel, threatening strikes otherwise, or fare hikes which would add further pressure to already high inflation.
In Britain, truck drivers caused road chaos in London this week in a protest to demand government help over rising fuel prices. Across the English Channel, Dutch truckers called on motorists to honk their horns to push for lower fuel taxes.
France has called on the Group of Eight industrialised nations to act together to restore oil prices to a more bearable level, warning the fuel price surge threatens economic growth.Reuters
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