JUARAWEE KITTISILPA | Nation Group
Recognized as world’s top oil producer, Thailand still have one of the highest fuel costs within Southeast Asia while getting the lowest returns from exporting to overseas, said ML Kornkasiwat Kasemsri from the Committee on Good Governance Promotion in the Energy Sector.
The committee found that in May alone, Thailand exported around 37 million litres per day to Singapore and elsewhere. However, it receives the lowest returns compared to other oil exporting countries in Southeast Asia.
Apart from this, the price of petroleum products sold to the general public are higher than the export prices. Thais are still using the high oil price based on the world market rate, which is quoted from the Singapore; plus other expenses such as logistics –to and from Singapore to Bangkok- and miscellaneous costs.
The good governance promotion on energy sector commission said this practice is stated by the petroleum law that Thais have to buy petroleum at an import price rate.
“We have to understand that both the crude oil and natural gas in Thailand are the resources that belong to the Thai people since the country announced democracy in 1932. But if the people are still spending so high on oil prices, how is Thailand going ‘prosper beyond and forever’? It won’t happen”, he added.
“Thailand is now leading Myanmar, Vietnam, Brunei, and many more countries as oil producer and exporter but with the lowest returns. While domestically, we have the highest petroleum price compared to Myanmar, Malaysia, Indonesia, and the Philippines. I’m afraid Thailand will not be the one to beat in the long-run.”
According to the Energy Information Administration (EIS) of the United States, Thailand now ranks the 24th out of some 200 countries as the world natural gas producer, while placing on the 5th among the OPEC countries; beating a total of 8 countries in the petroleum exporting grouping. As for crude oil, Thailand is rank on the 33rd as world’s producer by OPEC’s Annual Statistical Bulletin.
Today, the total of the country’s production of both oil and gas have accounted to over 900-thousand barrel per day or around 150 million litre per day, while the Thai people are only using around 73 million litre a day, he said.
The energy monitoring commissioner also showed concerns that the country has no price competition for fuel products, as a result of having all 5 of 6 oil refineries owned by one major stakeholder.
“We may see that there are many gas station brands, but that’s only the foreground. Behind it is the main stakeholder that owns 5 major refineries which has a total of 87% of the production capacity.” He said.
Governments after governments have never look into this matter seriously or cure the problem at its core, he said, not only the way it manages natural resources is outdated, but the petroleum law dates back to around 40 years ago.
He explained that after the 2004 incident, where the global oil price shot up over 100 dollar per barrel from 28 dollars, every country adjusted their laws to help ease the people’s burden and for their countries to receive the most benefit. But Thailand remains to be the only country that insisted to stay as it is.
“Back then we may not have the know-how in drilling up oil by ourselves, but now we do. We ought to learn to manage it well for the country’s benefit or otherwise we might not be able to catch up with ASEAN.”
