"The price float will not have any immediate adverse effects on the poor because global LPG prices remain low," he said. This substantial drop in global gas prices will allow the state to reduce or eliminate State Oil Fund subsidies, which have kept prices low for years, said Mr Twarath. The State Oil Fund retains 6.44 billion baht in cash that it could readily use for subsidies if global gas prices rise. The plan to liberalise LPG trade was welcomed by most gas companies, including SET-listed SGP, the second-largest LPG trader in the country. Domestic gas prices come from different gas blocks, each with different costs and prices.

Source: Bangkok Post July 06, 2017 21:33 UTC