The Department of Energy Business in Thailand has revealed a 2.3% rise in the country’s fuel consumption to 155 million litres per day (MLD) in the first eight months of the year. This comes despite a decrease in diesel usage by 3.9% to 70 MLD, attributed to escalating prices.
A shift in domestic diesel consumption is anticipated in October, following the Cabinet’s decision to reduce the diesel price to below 30 baht per litre from 31.9 baht, shared an anonymous department source.
This move necessitates a decrease in the diesel excise tax and an adjustment in the marketing margin of diesel sales by oil retailers. The diesel price adjustment came into effect on September 20.
The department’s report further disclosed an increased demand for fuel consumption and other key fuels between January and August.
Consumption of gasoline and gasohol, a gasoline-ethanol blend, grew by 5.5% to 31.9 MLD from 30.2 MLD in the same period last year.
Jet fuel saw the highest surge, with a 70% year-on-year increase to 13.3 MLD from 7.8 MLD. Compressed natural gas (CNG) also rose by 1% to 3,430 tonnes daily, credited to a price subsidy by national oil and gas conglomerate PTT Plc., effective from June until December.
The reopening of the country and subsequent business recovery, particularly in the tourism sector, spurred fuel consumption demand, explained Nanthika Thangsupanich, director-general of the department.
However, there was a slight 0.6% dip in demand for liquefied petroleum gas (LPG) to 18.1 million kilogrammes daily, due to the impact of low polymer prices in the petrochemical sector. Fuel oil also saw a 9.3% year-on-year drop to 5.7 MLD.
Thangsupanich further informed that fuel imports rose marginally by 1.3% year-on-year to 1.042 million barrels per day (BPD), though the import value fell significantly by 20.1% to 92.5 billion baht.
The country’s exports of refined oil also declined by 3% to 164,378 BPD, with the value falling by 24.9% to 16.5 billion baht, owing to decreasing global prices, Bangkok Post reported.
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