Autogas station network expands in Thailand due to increasing fuel demand

The number of LPG filling stations has increased as more motorists switch from diesel to this cleaner and more economic fuel, a trend stimulated by the expiry of the diesel excise tax exemption last month, according to the Department of Energy Business.

The tax waiver of 5 baht (USD 0,04) a litre ended on July 20, leading the Oil Fuel Fund Office (OFFO) to announce it would keep the diesel price unchanged at 31.94 baht (USD 0,90) a litre, using money from Oil Fuel Fund to offset the price. However, some drivers are still switching to Autogas, which remains under the state price subsidy program.

The pump price of LPG is now 25.8 baht (USD 0,73) a kilogramme. The OFFO is subsidising LPG at 1.32 baht per kilogramme, and diesel at 5.18 baht a litre.

“Global oil prices tend to remain high, causing motorists to use LPG instead of diesel,” said Nanthika Thangsupanich, Director General of the Department of Energy Business.

With more motorists using LPG the number of refuelling stations has increased to 1,628 as of June 2023, up from 1,601 in June last year.

According to the department, total fuel consumption grew by 2.7% to 156.7 million litres per day during the first six months of this year, while consumption of diesel dropped by 3.7% to 72.3 million litres per day.

Nanthika commented that he expected diesel consumption in the second half of the year to keep decreasing, by 1.9%, due to rising global oil prices.

Source: Bangkok Post

30 August 2023