Energy Minister Pirapan Salirathavibhaga says that he has completed the drafting of a new bill to regulate trade in oil and gas, which is aimed at ensuring fairness to all stakeholders, especially fair prices for consumers, enhancing Thailand’s energy security and liberalising oil imports.
In his Facebook post on Saturday, the minister said that, according to the draft, domestic oil prices will not be adjusted on an almost daily basis, but once a month, and the adjustments will not be with reference to prices in a neighbouring country, but will reflect the actual cost of production of refined oil and gas.
The “cost plus” system, advocated by the draft bill, would be used to calculate domestic oil and gas prices, he said, adding that domestic oil traders would need to explain why prices are to be adjusted and by how much.
Apart from ensuring fairness for consumers, Pirapan said the bill would allow transport operators, farmers’ or fishing groups to import oil for their own use.
The draft also seeks to promote the use of solar energy, replace the Oil Fuel Fund Office with a commission and create a Strategic Petroleum Reserve, increasing Thailand’s oil reserves from 50 to 90 days.
Pirapan said he crafted the new draft himself, with the help of five legal and energy experts, namely former energy permanent secretary Arkhun Sitthipong, Athoek Asavanan, a legal expert, two representatives of the Council of State, Patcharodom Limpisathien and Chintaphan Tungsubutr, and Sutthirak Yimyoung, his ‘right-hand man’.
