Transport Federation Demands Fuel Price Cuts and Structural Reform
Thailand's Land Transport Federation has delivered a 10-point demand to Energy Minister Eknat Promphan calling for lower fuel prices and a restructuring of the pricing system. The ministry acknowledged the sector's strain from global oil price spikes driven by the Russia-Ukraine war and outlined existing relief measures, including the removal of hidden costs and legal action against oil hoarders, with negotiations with operators expected imminently.
The Land Transport Federation submitted a petition demanding lower prices and a restructuring of fuel prices for Energy Minister Eknat Promphan to consider. Talks with operators are expected within this week or next. Ms. Thitiphus Chotdechachanand, Secretary to the Minister of Energy, along with Mr. Phongphol Yotmuangcharoen, Ministry of Energy Spokesperson, received the letter from Mr. Thongyoo Khongkhan, President of the Land Transport Federation of Thailand, and leaders of the transport and logistics movement, to hear demands regarding fuel price reductions and price structure adjustments. The Ministry of Energy understands the heavy burden transport operators face amid the prolonged overseas conflict lasting over eight months, which has caused global oil prices to surge 2-3 times higher than in 2022 during the Russia-Ukraine war. The ministry has not been idle and is preparing a proposal on fuel price restructuring to present to Minister Eknat Promphan for urgent consideration, and expects to invite operator representatives to meet the minister within this week or next. Ms. Thitiphus revealed progress on legal enforcement against oil hoarders in March, receiving a report from the Department of Special Investigation (DSI) that 24 suspects have been prosecuted, including oil hoarders under Section 7, and that DSI will be invited to discuss with the Department of Energy Business next week, affirming that the ministry will follow cases to the end to demonstrate its seriousness in solving the problem. Mr. Phongphol Yotmuangcharoen, Ministry of Energy Spokesperson, emphasized that the Minister understands the difficulties of transport operators very well. He noted the ministry has already addressed some structural issues, including cutting "phantom costs" that existed for over 22 years, saving the public 10.8 billion baht per year; using nearly 32 billion baht of refinery excess profits to lower ex-refinery prices, with continuous monitoring to further reduce fuel costs; and promoting biofuels B20 and E20 to cut crude oil imports. Regarding the proposed excise tax cut, the ministry said it must be studied carefully to avoid future fiscal burdens, but pledged to manage the price structure as effectively as possible. "The Ministry of Energy confirms it is ready to listen to every proposal with sincerity and empathy," he said. "We have consistently tackled root causes, and several of the federation's 10 demands — such as cutting phantom costs and seriously prosecuting oil hoarders — have already been acted upon." The ministry will address opacity to ensure the fairest possible pricing structure and will thoroughly consider all feedback received today to find a suitable solution that helps all sectors weather this crisis together.
