คุยกับ ‘เอกนัฏ’ ใช้กฎหมาย สั่งหั่นราคาน้ำมันหน้าโรงกลั่น แก้น้ำมันแพง | THE STANDARD WEALTH

The new Minister of Energy, Mr. Ekanus Phromphan, began his tenure with a significant decision to reduce the price of diesel, specifically B7 and B20, by 2 baht per liter. This decision was made at a meeting of the National Energy Policy Council and is based on the Royal Decree on Amendment and Prevention of Shortages Regarding fuel, governed by law 256. The price reduction is set to take effect starting tomorrow, following the publication of the announcement in the Royal Gazette today. The Minister explained the mechanism behind this price reduction. Traditionally, Thailand's oil pricing system uses Singapore as a reference price, and then factors in taxes and marketing costs, with the Oil Fund acting as a subsidy mechanism. However, a new mechanism has been introduced: setting a price that reflects the actual cost of refining. This change was deemed necessary because the current market, particularly in Singapore, does not accurately reflect the costs incurred from crude oil prices. Crude oil prices have increased by 50%, but refined oil prices have seen an "unusually high" increase, reaching an all-time high of $292 per barrel last week, which is over 200% higher than previous peaks. The new mechanism allows for intervention if the refining margin is deemed overpriced. The refining margin is a component of the refined oil price, which is essentially the cost of crude oil plus refining costs. By setting a more appropriate refining price, the domestic price of oil can be lowered. This authority is granted by the Emergency Decree of 2516 (1973) and the Prime Minister's Office order of 2019 (2562 BE) to the Energy Policy Administration Committee. This measure is considered necessary due to the "unusual circumstances" in the market. Regarding the specific 2-baht reduction, the Minister clarified that this figure was determined after studying market data, particularly the figures for March. Normally, the average refining cost is around 2 to 2.4 baht, but in March, it surged to 7 baht. While some of this increase is due to higher crude oil costs, including premium insurance value and increased shipping fees, the Ministry found that even after deducting these, the refining cost was still 2-3 baht higher than normal. The 2-baht reduction is based on this current "excessive" refining margin. The Ministry will continue to monitor these figures weekly, especially the data from April 1st to 7th, where refining margins have shot up to 16-17 baht. If the refining margin remains unusually high, further price adjustments, potentially beyond 2 baht, could be considered. Conversely, if refined oil prices return to normal levels, the discount might be reduced or eliminated. The Minister addressed rumors about a 5-billion-baht reduction in excess profits from refineries. He confirmed that this figure is an estimate based on a 2-baht reduction over one month, considering that approximately 70-80 million liters of diesel are sold daily, totaling about 2 billion liters per month. This reduction will be shared among all six refineries in the country, based on the amount of diesel (B7 and B20) sold. Discussions have been held with the refineries and the Comptroller General's Office, and there is a mutual agreement that refining profits are "unusually high." The alternative to this enforced price reduction would be voluntary donations, which would be difficult to regulate fairly among all refineries. Therefore, a mandated price reduction across all refineries is considered the fairest approach. The Minister also confirmed that if refining margins drop too low in the future, the government will consider providing support, potentially by increasing the "plus sign" in the pricing mechanism, which normally applies when margins are low. This ensures the liquidity of the refining plants. Beyond price management, the Minister highlighted the importance of quantity management. While April saw sufficient crude oil imports, May is expected to be challenging due to difficulties in sourcing crude oil. The government is preparing for potential shortages by considering measures such as increasing reserves and potentially reducing fuel supply to the system. A significant part of the long-term strategy involves reducing dependence on imported raw materials. The Minister emphasized promoting the use of biofuels like E20, E20 diesel, and ethanol. While these biofuels were historically more expensive than crude oil, their prices are now comparable to or even cheaper than refined petroleum products. Promoting their use not only reduces import reliance but also benefits local farmers who produce the raw materials. The country also imports LNG for electricity generation, and while domestically produced gas covers over 50% of demand, 40% is still imported as LNG, which has become unusually expensive. Reducing this dependence through promoting solar or biomass energy production is also a priority. The Minister also addressed the question of reducing excise tax, which currently accounts for 6 baht in the oil price structure. He explained that reducing excise tax would directly cut national income, making it harder for the government to provide assistance during crises. Instead, the current approach focuses on asking those making "excessive profits" to share some of those profits, rather than incurring a loss. He reiterated that reducing excise tax is difficult to reverse and could distort market mechanisms. Finally, the Minister discussed future measures, including the possibility of further adjusting the Singapore reference price if it continues to be inappropriate. He also emphasized energy conservation through promoting B20 by increasing the number of dispensing units at gas stations. Currently, B20 is the cheapest option, but its availability is limited. Making B20 readily available could lead to limiting refills of premium products or B7 in the future, thereby encouraging the use of more sustainable and domestically produced fuels.